Big Loser Alert: Trading today’s -8.0% move in VITAL FARMS INC. COMMON STOCK $VITL

Quantchabot has detected a new Bear Call Spread trade opportunity for VITAL FARMS INC. COMMON STOCK (VITL) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

VITL was recently trading at $40.37 and has an implied volatility of 45.29% for this period. Based on an analysis of the options available for VITL expiring on 21-Feb-2025, there is a 34.28% likelihood that the underlying will close within the analyzed range of $36.53-$40.46 at expiration. In this scenario, the average linear return for the trade would be 70.21%.

Big -7.99% Change: After closing the last trading session at $43.88, VITAL FARMS INC. COMMON STOCK opened today at $41.20 and has reached a low of $38.09.

Trade approach: A movement as big as -7.99% is a significantly bearish indicator, so this trade is designed to be profitable if VITL maintains its current direction and does not revert back to pricing on the bullish side of $40.37 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 VITAL FARMS INC. COMMON STOCK closes at or below $41.40 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 58.93% 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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