Quantchabot has detected a promising Bear Call Spread trade opportunity for SUNRUN INC. COMMON STOCK (RUN) for the 27-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RUN was recently trading at $9.80 and has an implied volatility of 97.78% for this period. Based on an analysis of the options available for RUN expiring on 27-Oct-2023, there is a 34.40% likelihood that the underlying will close within the analyzed range of $8.51-$9.81 at expiration. In this scenario, the average linear return for the trade would be 28.41%.
Big -7.37% Change: After closing the last trading session at $10.58, SUNRUN INC. COMMON STOCK opened today at $9.73 and has reached a low of $9.55.
Trade approach: A movement as big as -7.37% is a significantly bearish indicator, so this trade is designed to be profitable if RUN maintains its current direction and does not revert back to pricing on the bullish side of $9.80 on 27-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 SUNRUN INC. COMMON STOCK closes at or below $9.82 on 27-Oct-2023. Based on our risk-neutral analysis, there is a 50.24% 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.