Quantchabot has detected a promising Covered Put trade opportunity for IHS HOLDING LTD (IHS) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IHS was recently trading at $4.99 and has an implied volatility of 95.45% for this period. Based on an analysis of the options available for IHS expiring on 20-Oct-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $3.67-$5.02 at expiration. In this scenario, the average linear return for the trade would be 15.84%.
Big -16.13% Change: After closing the last trading session at $5.95, IHS HOLDING LTD opened today at $5.89 and has reached a low of $4.57.
Trade approach: A movement as big as -16.13% is a significantly bearish indicator, so this trade is designed to be profitable if IHS maintains its current direction and does not revert back to pricing on the bullish side of $4.99 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 IHS HOLDING LTD closes at or below $5.34 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 57.79% 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.