Quantchabot has detected a promising Bear Call Spread trade opportunity for HEWLETT PACKARD ENTERPRISE CO (HPE) for the 17-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HPE was recently trading at $15.13 and has an implied volatility of 33.08% for this period. Based on an analysis of the options available for HPE expiring on 17-Nov-2023, there is a 34.21% likelihood that the underlying will close within the analyzed range of $13.85-$15.20 at expiration. In this scenario, the average linear return for the trade would be 34.41%.
Big -7.18% Change: After closing the last trading session at $16.30, HEWLETT PACKARD ENTERPRISE CO opened today at $15.94 and has reached a low of $15.03.
Trade approach: A movement as big as -7.18% is a significantly bearish indicator, so this trade is designed to be profitable if HPE maintains its current direction and does not revert back to pricing on the bullish side of $15.13 on 17-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 HEWLETT PACKARD ENTERPRISE CO closes at or below $15.20 on 17-Nov-2023. Based on our risk-neutral analysis, there is a 50.08% 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.