Quantchabot has detected a promising Bear Call Spread trade opportunity for SOLAREDGE TECHNOLOGIES INC. C (SEDG) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SEDG was recently trading at $78.32 and has an implied volatility of 76.32% for this period. Based on an analysis of the options available for SEDG expiring on 19-Jan-2024, there is a 34.16% likelihood that the underlying will close within the analyzed range of $54.21-$79.46 at expiration. In this scenario, the average linear return for the trade would be 20.77%.
52 week low: SOLAREDGE TECHNOLOGIES INC. C recently reached a new 52-week low at $72.37. SEDG had traded in the range $116.56-$345.80 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if SEDG maintains its current direction and does not revert back to pricing on the bullish side of $78.32 on 19-Jan-2024. 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 SOLAREDGE TECHNOLOGIES INC. C closes at or below $79.55 on 19-Jan-2024. Based on our risk-neutral analysis, there is a 50.12% 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.