Big Loser Alert: Trading today’s -8.0% move in ENPHASE ENERGY $ENPH

Quantchabot has detected a promising Bear Call Spread trade opportunity for ENPHASE ENERGY (ENPH) for the 3-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ENPH was recently trading at $201.88 and has an implied volatility of 65.40% for this period. Based on an analysis of the options available for ENPH expiring on 3-Feb-2023, there is a 34.40% likelihood that the underlying will close within the analyzed range of $181.66-$202.14 at expiration. In this scenario, the average linear return for the trade would be 18.15%.

Big -8.01% Change: After closing the last trading session at $219.47, ENPHASE ENERGY opened today at $207.17 and has reached a low of $201.83.

Trade approach: A movement as big as -8.01% is a significantly bearish indicator, so this trade is designed to be profitable if ENPH maintains its current direction and does not revert back to pricing on the bullish side of $201.88 on 3-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 ENPHASE ENERGY closes at or below $202.16 on 3-Feb-2023. Based on our risk-neutral analysis, there is a 50.05% 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.