Big Loser Alert: Trading today’s -36.3% move in TARGET HOSPITALITY CORP. COMMON STOCK $TH

Quantchabot has detected a new Bear Call Spread trade opportunity for TARGET HOSPITALITY CORP. COMMON STOCK (TH) for the 19-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TH was recently trading at $6.69 and has an implied volatility of 87.35% for this period. Based on an analysis of the options available for TH expiring on 19-Jul-2024, there is a 34.19% likelihood that the underlying will close within the analyzed range of $5.06-$6.73 at expiration. In this scenario, the average linear return for the trade would be 27.47%.

Big -36.29% Change: After closing the last trading session at $10.50, TARGET HOSPITALITY CORP. COMMON STOCK opened today at $7.25 and has reached a low of $6.11.

Trade approach: A movement as big as -36.29% is a significantly bearish indicator, so this trade is designed to be profitable if TH maintains its current direction and does not revert back to pricing on the bullish side of $6.69 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 TARGET HOSPITALITY CORP. COMMON STOCK closes at or below $6.75 on 19-Jul-2024. Based on our risk-neutral analysis, there is a 50.42% 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.


Posted

in

by

Tags:

Comments

Leave a Reply