Quantchabot has detected a new Bear Call Spread trade opportunity for INMODE LTD. ORDINARY SHARES (INMD) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
INMD was recently trading at $16.01 and has an implied volatility of 46.21% for this period. Based on an analysis of the options available for INMD expiring on 17-Jan-2025, there is a 34.44% likelihood that the underlying will close within the analyzed range of $14.93-$16.03 at expiration. In this scenario, the average linear return for the trade would be 55.07%.
Big -7.99% Change: After closing the last trading session at $17.40, INMODE LTD. ORDINARY SHARES opened today at $15.70 and has reached a low of $15.43.
Trade approach: A movement as big as -7.99% is a significantly bearish indicator, so this trade is designed to be profitable if INMD maintains its current direction and does not revert back to pricing on the bullish side of $16.01 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 INMODE LTD. ORDINARY SHARES closes at or below $16.35 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 61.21% 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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