Big Loser Alert: Trading today’s -7.8% move in REDWIRE CORPORATION $RDW

Quantchabot has detected a new Bear Call Spread trade opportunity for REDWIRE CORPORATION (RDW) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RDW was recently trading at $22.06 and has an implied volatility of 101.83% for this period. Based on an analysis of the options available for RDW expiring on 21-Feb-2025, there is a 34.27% likelihood that the underlying will close within the analyzed range of $17.55-$22.11 at expiration. In this scenario, the average linear return for the trade would be 31.79%.

Big -7.78% Change: After closing the last trading session at $23.92, REDWIRE CORPORATION opened today at $22.47 and has reached a low of $21.51.

Trade approach: A movement as big as -7.78% is a significantly bearish indicator, so this trade is designed to be profitable if RDW maintains its current direction and does not revert back to pricing on the bullish side of $22.06 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 REDWIRE CORPORATION closes at or below $22.25 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 51.10% 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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