Quantchabot has detected a promising Bear Call Spread trade opportunity for SWEETGREEN INC (SG) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SG was recently trading at $12.75 and has an implied volatility of 49.57% for this period. Based on an analysis of the options available for SG expiring on 20-Oct-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $10.92-$12.83 at expiration. In this scenario, the average linear return for the trade would be 47.09%.
Big -8.47% Change: After closing the last trading session at $13.93, SWEETGREEN INC opened today at $13.68 and has reached a low of $12.55.
Trade approach: A movement as big as -8.47% is a significantly bearish indicator, so this trade is designed to be profitable if SG maintains its current direction and does not revert back to pricing on the bullish side of $12.75 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 SWEETGREEN INC closes at or below $13.00 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.33% 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.