Quantchabot has detected a promising Bear Call Spread trade opportunity for ENPHASE ENERGY (ENPH) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ENPH was recently trading at $103.77 and has an implied volatility of 77.01% for this period. Based on an analysis of the options available for ENPH expiring on 20-Oct-2023, there is a 37.30% likelihood that the underlying will close within the analyzed range of $100.27-$103.78 at expiration. In this scenario, the average linear return for the trade would be 31.68%.
Big -10.47% Change: After closing the last trading session at $115.90, ENPHASE ENERGY opened today at $99.56 and has reached a low of $97.52.
Trade approach: A movement as big as -10.47% is a significantly bearish indicator, so this trade is designed to be profitable if ENPH maintains its current direction and does not revert back to pricing on the bullish side of $103.77 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 ENPHASE ENERGY closes at or below $103.85 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.95% 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.