Quantchabot has detected a promising Covered Put trade opportunity for SANTANDER FINANCE SA UNIPERSON (SAN) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SAN was recently trading at $3.31 and has an implied volatility of 67.64% for this period. Based on an analysis of the options available for SAN expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $2.68-$3.33 at expiration. In this scenario, the average linear return for the trade would be 16.67%.
Big -8.68% Change: After closing the last trading session at $3.63, SANTANDER FINANCE SA UNIPERSON opened today at $3.29 and has reached a low of $3.29.
Trade approach: A movement as big as -8.68% is a significantly bearish indicator, so this trade is designed to be profitable if SAN maintains its current direction and does not revert back to pricing on the bullish side of $3.31 on 21-Apr-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 SANTANDER FINANCE SA UNIPERSON closes at or below $3.36 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 51.62% 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.
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