Quantchabot has detected a new Bear Call Spread trade opportunity for ARCHER AVIATION INC (ACHR) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ACHR was recently trading at $10.36 and has an implied volatility of 106.40% for this period. Based on an analysis of the options available for ACHR expiring on 21-Feb-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $7.18-$10.42 at expiration. In this scenario, the average linear return for the trade would be 24.97%.
Big -7.00% Change: After closing the last trading session at $11.14, ARCHER AVIATION INC opened today at $10.68 and has reached a low of $10.32.
Trade approach: A movement as big as -7.00% is a significantly bearish indicator, so this trade is designed to be profitable if ACHR maintains its current direction and does not revert back to pricing on the bullish side of $10.36 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 ARCHER AVIATION INC closes at or below $10.47 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 50.54% 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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