Quantchabot has detected a promising Bear Call Spread trade opportunity for SUNPOWER (SPWR) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SPWR was recently trading at $5.12 and has an implied volatility of 87.43% for this period. Based on an analysis of the options available for SPWR expiring on 19-Jan-2024, there is a 34.16% likelihood that the underlying will close within the analyzed range of $3.35-$5.20 at expiration. In this scenario, the average linear return for the trade would be 21.37%.
Big -7.99% Change: After closing the last trading session at $5.57, SUNPOWER opened today at $4.95 and has reached a low of $4.73.
Trade approach: A movement as big as -7.99% is a significantly bearish indicator, so this trade is designed to be profitable if SPWR maintains its current direction and does not revert back to pricing on the bullish side of $5.12 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 SUNPOWER closes at or below $5.20 on 19-Jan-2024. Based on our risk-neutral analysis, there is a 50.01% 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.