Quantchabot has detected a promising Covered Put trade opportunity for SES AI CORP (SES) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SES was recently trading at $4.59 and has an implied volatility of 104.35% for this period. Based on an analysis of the options available for SES expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $3.40-$4.61 at expiration. In this scenario, the average linear return for the trade would be 18.10%.
Big -9.37% Change: After closing the last trading session at $5.07, SES AI CORP opened today at $5.00 and has reached a low of $4.56.
Trade approach: A movement as big as -9.37% is a significantly bearish indicator, so this trade is designed to be profitable if SES maintains its current direction and does not revert back to pricing on the bullish side of $4.59 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 SES AI CORP closes at or below $5.29 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 67.71% 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.