Quantchabot has detected a promising Bear Call Spread trade opportunity for SUNRUN INC. COMMON STOCK (RUN) for the 10-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RUN was recently trading at $22.61 and has an implied volatility of 77.23% for this period. Based on an analysis of the options available for RUN expiring on 10-Feb-2023, there is a 34.29% likelihood that the underlying will close within the analyzed range of $19.20-$22.65 at expiration. In this scenario, the average linear return for the trade would be 34.44%.
Big -13.36% Change: After closing the last trading session at $26.09, SUNRUN INC. COMMON STOCK opened today at $24.20 and has reached a low of $22.51.
Trade approach: A movement as big as -13.36% is a significantly bearish indicator, so this trade is designed to be profitable if RUN maintains its current direction and does not revert back to pricing on the bullish side of $22.61 on 10-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 bearish strategy, the trade would be profitable if SUNRUN INC. COMMON STOCK closes at or below $22.67 on 10-Feb-2023. Based on our risk-neutral analysis, there is a 50.17% 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.