Quantchabot has detected a promising Bear Call Spread trade opportunity for VERRA MOBILITY CORP (VRRM) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VRRM was recently trading at $17.66 and has an implied volatility of 37.42% for this period. Based on an analysis of the options available for VRRM expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $15.44-$17.80 at expiration. In this scenario, the average linear return for the trade would be 30.36%.
Big -9.37% Change: After closing the last trading session at $19.48, VERRA MOBILITY CORP opened today at $18.16 and has reached a low of $17.04.
Trade approach: A movement as big as -9.37% is a significantly bearish indicator, so this trade is designed to be profitable if VRRM maintains its current direction and does not revert back to pricing on the bullish side of $17.66 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 VERRA MOBILITY CORP closes at or below $18.10 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 54.67% 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.