Quantchabot has detected a new Covered Put trade opportunity for SERVE ROBOTICS INC. (SERV) for the 31-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SERV was recently trading at $13.47 and has an implied volatility of 138.37% for this period. Based on an analysis of the options available for SERV expiring on 31-Jan-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $8.58-$13.54 at expiration. In this scenario, the average linear return for the trade would be 34.25%.
Big -7.80% Change: After closing the last trading session at $14.61, SERVE ROBOTICS INC. opened today at $15.12 and has reached a low of $13.06.
Trade approach: A movement as big as -7.80% is a significantly bearish indicator, so this trade is designed to be profitable if SERV maintains its current direction and does not revert back to pricing on the bullish side of $13.47 on 31-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 SERVE ROBOTICS INC. closes at or below $14.36 on 31-Jan-2025. Based on our risk-neutral analysis, there is a 55.16% 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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