Quantchabot has detected a promising Bear Call Spread trade opportunity for LUCID GROUP INC (LCID) for the 3-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LCID was recently trading at $4.58 and has an implied volatility of 81.47% for this period. Based on an analysis of the options available for LCID expiring on 3-Nov-2023, there is a 34.26% likelihood that the underlying will close within the analyzed range of $3.86-$4.60 at expiration. In this scenario, the average linear return for the trade would be 40.89%.
Big -8.30% Change: After closing the last trading session at $5.00, LUCID GROUP INC opened today at $4.94 and has reached a low of $4.55.
Trade approach: A movement as big as -8.30% is a significantly bearish indicator, so this trade is designed to be profitable if LCID maintains its current direction and does not revert back to pricing on the bullish side of $4.58 on 3-Nov-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 LUCID GROUP INC closes at or below $4.65 on 3-Nov-2023. Based on our risk-neutral analysis, there is a 52.64% 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.