Quantchabot has detected a promising Bear Call Spread trade opportunity for PRIVIA HEALTH GROUP INC. COMMON STOCK (PRVA) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PRVA was recently trading at $34.02 and has an implied volatility of 64.63% for this period. Based on an analysis of the options available for PRVA expiring on 21-Oct-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $28.36-$34.09 at expiration. In this scenario, the average linear return for the trade would be 24.55%.
Big -8.08% Change: After closing the last trading session at $37.01, PRIVIA HEALTH GROUP INC. COMMON STOCK opened today at $37.00 and has reached a low of $33.96.
Trade approach: A movement as big as -8.08% is a significantly bearish indicator, so this trade is designed to be profitable if PRVA maintains its current direction and does not revert back to pricing on the bullish side of $34.02 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 PRIVIA HEALTH GROUP INC. COMMON STOCK closes at or below $34.20 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.69% 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.