Big Loser Alert: Trading today’s -7.8% move in WEAVE COMMUNICATIONS $WEAV

Quantchabot has detected a promising Bear Call Spread trade opportunity for WEAVE COMMUNICATIONS (WEAV) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WEAV was recently trading at $9.64 and has an implied volatility of 61.67% for this period. Based on an analysis of the options available for WEAV expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $7.67-$9.72 at expiration. In this scenario, the average linear return for the trade would be 11.11%.

Big -7.84% Change: After closing the last trading session at $10.46, WEAVE COMMUNICATIONS opened today at $10.53 and has reached a low of $9.50.

Trade approach: A movement as big as -7.84% is a significantly bearish indicator, so this trade is designed to be profitable if WEAV maintains its current direction and does not revert back to pricing on the bullish side of $9.64 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 WEAVE COMMUNICATIONS closes at or below $10.10 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 56.43% 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.






Leave a Reply