Big Loser Alert: Trading today’s -7.6% move in SHOCKWAVE MEDICAL INC $SWAV

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

SWAV was recently trading at $263.19 and has an implied volatility of 56.73% for this period. Based on an analysis of the options available for SWAV expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $224.35-$263.75 at expiration. In this scenario, the average linear return for the trade would be 29.56%.

Big -7.55% Change: After closing the last trading session at $284.69, SHOCKWAVE MEDICAL INC opened today at $283.08 and has reached a low of $262.70.

Trade approach: A movement as big as -7.55% is a significantly bearish indicator, so this trade is designed to be profitable if SWAV maintains its current direction and does not revert back to pricing on the bullish side of $263.19 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 SHOCKWAVE MEDICAL INC closes at or below $264.30 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.52% 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.