Big Loser Alert: Trading today’s -8.5% move in COMPASS MINERALS $CMP

Quantchabot has detected a new Bear Call Spread trade opportunity for COMPASS MINERALS (CMP) for the 19-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CMP was recently trading at $12.24 and has an implied volatility of 54.63% for this period. Based on an analysis of the options available for CMP expiring on 19-Jul-2024, there is a 34.19% likelihood that the underlying will close within the analyzed range of $10.29-$12.32 at expiration. In this scenario, the average linear return for the trade would be 43.58%.

Big -8.48% Change: After closing the last trading session at $13.38, COMPASS MINERALS opened today at $13.16 and has reached a low of $12.04.

Trade approach: A movement as big as -8.48% is a significantly bearish indicator, so this trade is designed to be profitable if CMP maintains its current direction and does not revert back to pricing on the bullish side of $12.24 on 19-Jul-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 COMPASS MINERALS closes at or below $13.00 on 19-Jul-2024. Based on our risk-neutral analysis, there is a 61.77% 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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