Quantchabot has detected a promising Covered Put trade opportunity for SPORTRADAR GROUP AG (SRAD) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SRAD was recently trading at $9.08 and has an implied volatility of 79.95% for this period. Based on an analysis of the options available for SRAD expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $7.22-$9.10 at expiration. In this scenario, the average linear return for the trade would be 20.32%.
Big -9.20% Change: After closing the last trading session at $10.00, SPORTRADAR GROUP AG opened today at $10.03 and has reached a low of $9.06.
Trade approach: A movement as big as -9.20% is a significantly bearish indicator, so this trade is designed to be profitable if SRAD maintains its current direction and does not revert back to pricing on the bullish side of $9.08 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 SPORTRADAR GROUP AG closes at or below $9.13 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.57% 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.