Quantchabot has detected a promising Bull Put Spread trade opportunity for THE REALREAL INC. COMMON STOCK (REAL) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
REAL was recently trading at $1.51 and has an implied volatility of 109.61% for this period. Based on an analysis of the options available for REAL expiring on 17-Feb-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $1.52-$2.59 at expiration. In this scenario, the average linear return for the trade would be 25.00%.
Big 7.86% Change: After closing the last trading session at $1.40, THE REALREAL INC. COMMON STOCK opened today at $1.45 and has reached a high of $1.56.
Trade approach: A movement as big as 7.86% is a significantly bullish indicator, so this trade is designed to be profitable if REAL maintains its current direction and does not revert back to pricing on the bearish side of $1.51 on 17-Feb-2023. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if THE REALREAL INC. COMMON STOCK closes at or above $1.40 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 56.43% 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.