Big Loser Alert: Trading today’s -7.0% move in AGILON HEALTH INC $AGL

Quantchabot has detected a promising Bear Call Spread trade opportunity for AGILON HEALTH INC (AGL) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AGL was recently trading at $21.86 and has an implied volatility of 62.32% for this period. Based on an analysis of the options available for AGL expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $18.34-$21.91 at expiration. In this scenario, the average linear return for the trade would be 45.65%.

Big -7.02% Change: After closing the last trading session at $23.51, AGILON HEALTH INC opened today at $23.45 and has reached a low of $21.75.

Trade approach: A movement as big as -7.02% is a significantly bearish indicator, so this trade is designed to be profitable if AGL maintains its current direction and does not revert back to pricing on the bullish side of $21.86 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 AGILON HEALTH INC closes at or below $21.95 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.45% 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.