52-Week Low Alert: Trading today’s movement in PLUG POWER $PLUG

Quantchabot has detected a promising Bear Call Spread trade opportunity for PLUG POWER (PLUG) for the 28-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PLUG was recently trading at $11.70 and has an implied volatility of 74.13% for this period. Based on an analysis of the options available for PLUG expiring on 28-Apr-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $9.13-$11.76 at expiration. In this scenario, the average linear return for the trade would be 22.24%.

52 week low: PLUG POWER recently reached a new 52-week low at $11.39. PLUG had traded in the range $11.41-$32.05 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if PLUG maintains its current direction and does not revert back to pricing on the bullish side of $11.70 on 28-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 PLUG POWER closes at or below $11.76 on 28-Apr-2023. Based on our risk-neutral analysis, there is a 50.01% 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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