Big Loser Alert: Trading today’s -8.8% move in SOTERA HEALTH COMPANY COMMON STOCK $SHC

Quantchabot has detected a promising Covered Put trade opportunity for SOTERA HEALTH COMPANY COMMON STOCK (SHC) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SHC was recently trading at $7.48 and has an implied volatility of 102.83% for this period. Based on an analysis of the options available for SHC expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $5.56-$7.50 at expiration. In this scenario, the average linear return for the trade would be 29.80%.

Big -8.78% Change: After closing the last trading session at $8.20, SOTERA HEALTH COMPANY COMMON STOCK opened today at $7.62 and has reached a low of $7.37.

Trade approach: A movement as big as -8.78% is a significantly bearish indicator, so this trade is designed to be profitable if SHC maintains its current direction and does not revert back to pricing on the bullish side of $7.48 on 21-Oct-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if SOTERA HEALTH COMPANY COMMON STOCK closes at or below $7.63 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 52.37% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.