Quantchabot has detected a promising Covered Put trade opportunity for IDEANOMICS INC (IDEX) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IDEX was recently trading at $3.82 and has an implied volatility of 149.32% for this period. Based on an analysis of the options available for IDEX expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $2.17-$3.85 at expiration. In this scenario, the average linear return for the trade would be 34.86%.
Big -11.16% Change: After closing the last trading session at $4.30, IDEANOMICS INC opened today at $3.96 and has reached a low of $3.80.
Trade approach: A movement as big as -11.16% is a significantly bearish indicator, so this trade is designed to be profitable if IDEX maintains its current direction and does not revert back to pricing on the bullish side of $3.82 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 IDEANOMICS INC closes at or below $3.86 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.14% 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.