Quantchabot has detected a new Bear Call Spread trade opportunity for HESAI GROUP ADS (CLASS B) (HSAI) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HSAI was recently trading at $13.53 and has an implied volatility of 120.56% for this period. Based on an analysis of the options available for HSAI expiring on 21-Feb-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $8.97-$13.60 at expiration. In this scenario, the average linear return for the trade would be 56.82%.
Big -8.33% Change: After closing the last trading session at $14.76, HESAI GROUP ADS (CLASS B) opened today at $14.20 and has reached a low of $13.10.
Trade approach: A movement as big as -8.33% is a significantly bearish indicator, so this trade is designed to be profitable if HSAI maintains its current direction and does not revert back to pricing on the bullish side of $13.53 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 HESAI GROUP ADS (CLASS B) closes at or below $13.80 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 51.38% 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.
Leave a Reply
You must be logged in to post a comment.