Quantchabot has detected a promising Covered Put trade opportunity for CLEANSPARK INC. COMMON STOCK (CLSK) for the 16-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CLSK was recently trading at $4.26 and has an implied volatility of 126.09% for this period. Based on an analysis of the options available for CLSK expiring on 16-Jun-2023, there is a 34.20% likelihood that the underlying will close within the analyzed range of $2.96-$4.29 at expiration. In this scenario, the average linear return for the trade would be 32.34%.
Big -7.28% Change: After closing the last trading session at $4.60, CLEANSPARK INC. COMMON STOCK opened today at $4.42 and has reached a low of $4.22.
Trade approach: A movement as big as -7.28% is a significantly bearish indicator, so this trade is designed to be profitable if CLSK maintains its current direction and does not revert back to pricing on the bullish side of $4.26 on 16-Jun-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 CLEANSPARK INC. COMMON STOCK closes at or below $4.31 on 16-Jun-2023. Based on our risk-neutral analysis, there is a 50.59% 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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