Quantchabot has detected a promising Bear Call Spread trade opportunity for SUNNOVA ENERGY INTERNATIONAL INC (NOVA) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NOVA was recently trading at $18.51 and has an implied volatility of 76.56% for this period. Based on an analysis of the options available for NOVA expiring on 17-Feb-2023, there is a 34.24% likelihood that the underlying will close within the analyzed range of $15.28-$18.57 at expiration. In this scenario, the average linear return for the trade would be 37.66%.
Big -8.14% Change: After closing the last trading session at $20.15, SUNNOVA ENERGY INTERNATIONAL INC opened today at $19.05 and has reached a low of $17.65.
Trade approach: A movement as big as -8.14% is a significantly bearish indicator, so this trade is designed to be profitable if NOVA maintains its current direction and does not revert back to pricing on the bullish side of $18.51 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 bearish strategy, the trade would be profitable if SUNNOVA ENERGY INTERNATIONAL INC closes at or below $19.00 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 54.72% 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.