Quantchabot has detected a new Bear Put Spread trade opportunity for TRANSOCEAN (RIG) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RIG was recently trading at $3.55 and has an implied volatility of 53.81% for this period. Based on an analysis of the options available for RIG expiring on 21-Feb-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $2.86-$3.58 at expiration. In this scenario, the average linear return for the trade would be 27.35%.
52 week low: TRANSOCEAN recently reached a new 52-week low at $3.48. RIG had traded in the range $3.54-$6.88 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if RIG maintains its current direction and does not revert back to pricing on the bullish side of $3.55 on 21-Feb-2025. 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 TRANSOCEAN closes at or below $3.62 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 52.13% 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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