Quantchabot has detected a promising Covered Put trade opportunity for SUPER GROUP (SGHC) LTD (SGHC) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SGHC was recently trading at $3.26 and has an implied volatility of 66.47% for this period. Based on an analysis of the options available for SGHC expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $2.52-$3.28 at expiration. In this scenario, the average linear return for the trade would be 16.17%.
Big -9.94% Change: After closing the last trading session at $3.62, SUPER GROUP (SGHC) LTD opened today at $3.54 and has reached a low of $3.26.
Trade approach: A movement as big as -9.94% is a significantly bearish indicator, so this trade is designed to be profitable if SGHC maintains its current direction and does not revert back to pricing on the bullish side of $3.26 on 20-Jan-2023. 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 SUPER GROUP (SGHC) LTD closes at or below $3.31 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 51.33% 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.