Quantchabot has detected a promising Bear Call Spread trade opportunity for INSULET (PODD) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PODD was recently trading at $181.91 and has an implied volatility of 43.61% for this period. Based on an analysis of the options available for PODD expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $155.20-$183.45 at expiration. In this scenario, the average linear return for the trade would be 45.30%.
52 week low: INSULET recently reached a new 52-week low at $181.26. PODD had traded in the range $185.48-$335.91 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 PODD maintains its current direction and does not revert back to pricing on the bullish side of $181.91 on 20-Oct-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 INSULET closes at or below $183.50 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.07% 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.