Big Loser Alert: Trading today’s -7.9% move in GIGACLOUD TECHNOLOGY INC CLASS A $GCT

Quantchabot has detected a new Bear Call Spread trade opportunity for GIGACLOUD TECHNOLOGY INC CLASS A (GCT) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GCT was recently trading at $19.63 and has an implied volatility of 72.93% for this period. Based on an analysis of the options available for GCT expiring on 21-Feb-2025, there is a 34.27% likelihood that the underlying will close within the analyzed range of $16.68-$19.68 at expiration. In this scenario, the average linear return for the trade would be 59.43%.

Big -7.93% Change: After closing the last trading session at $21.32, GIGACLOUD TECHNOLOGY INC CLASS A opened today at $19.86 and has reached a low of $18.96.

Trade approach: A movement as big as -7.93% is a significantly bearish indicator, so this trade is designed to be profitable if GCT maintains its current direction and does not revert back to pricing on the bullish side of $19.63 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 GIGACLOUD TECHNOLOGY INC CLASS A closes at or below $20.55 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 60.45% 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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