Quantchabot has detected a new Bear Call Spread trade opportunity for IREN LIMITED (IREN) for the 7-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IREN was recently trading at $10.51 and has an implied volatility of 106.99% for this period. Based on an analysis of the options available for IREN expiring on 7-Feb-2025, there is a 34.22% likelihood that the underlying will close within the analyzed range of $7.78-$10.55 at expiration. In this scenario, the average linear return for the trade would be 53.51%.
Big -7.64% Change: After closing the last trading session at $11.38, IREN LIMITED opened today at $11.00 and has reached a low of $10.23.
Trade approach: A movement as big as -7.64% is a significantly bearish indicator, so this trade is designed to be profitable if IREN maintains its current direction and does not revert back to pricing on the bullish side of $10.51 on 7-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 IREN LIMITED closes at or below $10.55 on 7-Feb-2025. Based on our risk-neutral analysis, there is a 50.02% 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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