Quantchabot has detected a new Bear Call Spread trade opportunity for XPO INC (XPO) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
XPO was recently trading at $134.76 and has an implied volatility of 53.27% for this period. Based on an analysis of the options available for XPO expiring on 17-Jan-2025, there is a 34.23% likelihood that the underlying will close within the analyzed range of $116.45-$135.24 at expiration. In this scenario, the average linear return for the trade would be 15.88%.
Big -7.39% Change: After closing the last trading session at $145.51, XPO INC opened today at $144.00 and has reached a low of $133.71.
Trade approach: A movement as big as -7.39% is a significantly bearish indicator, so this trade is designed to be profitable if XPO maintains its current direction and does not revert back to pricing on the bullish side of $134.76 on 17-Jan-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 XPO INC closes at or below $135.55 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 50.62% 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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