Quantchabot has detected a promising Covered Put trade opportunity for FARADAY FUTURE INTELLIGENT ELECTRIC INC (FFIE) for the 17-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FFIE was recently trading at $1.09 and has an implied volatility of 206.94% for this period. Based on an analysis of the options available for FFIE expiring on 17-Nov-2023, there is a 34.21% likelihood that the underlying will close within the analyzed range of $0.61-$1.10 at expiration. In this scenario, the average linear return for the trade would be 43.80%.
Big -7.57% Change: After closing the last trading session at $1.18, FARADAY FUTURE INTELLIGENT ELECTRIC INC opened today at $1.20 and has reached a low of $1.06.
Trade approach: A movement as big as -7.57% is a significantly bearish indicator, so this trade is designed to be profitable if FFIE maintains its current direction and does not revert back to pricing on the bullish side of $1.09 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 FARADAY FUTURE INTELLIGENT ELECTRIC INC closes at or below $1.20 on 17-Nov-2023. Based on our risk-neutral analysis, there is a 56.25% 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.