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 $85.17 and has an implied volatility of 78.23% 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 $58.38-$86.41 at expiration. In this scenario, the average linear return for the trade would be 23.77%.
Big -25.27% Change: After closing the last trading session at $113.98, SOLAREDGE TECHNOLOGIES INC. C opened today at $75.57 and has reached a low of $72.37.
Trade approach: A movement as big as -25.27% is a significantly 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 $85.17 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 $86.50 on 19-Jan-2024. Based on our risk-neutral analysis, there is a 50.10% 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.
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