Big Loser Alert: Trading today’s -8.1% move in ASTERA LABS INC. $ALAB

Quantchabot has detected a new Bear Call Spread trade opportunity for ASTERA LABS INC. (ALAB) for the 7-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ALAB was recently trading at $93.21 and has an implied volatility of 110.48% for this period. Based on an analysis of the options available for ALAB expiring on 7-Feb-2025, there is a 34.69% likelihood that the underlying will close within the analyzed range of $82.20-$93.26 at expiration. In this scenario, the average linear return for the trade would be 33.35%.

Big -8.10% Change: After closing the last trading session at $101.42, ASTERA LABS INC. opened today at $88.90 and has reached a low of $87.04.

Trade approach: A movement as big as -8.10% is a significantly bearish indicator, so this trade is designed to be profitable if ALAB maintains its current direction and does not revert back to pricing on the bullish side of $93.21 on 7-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 ASTERA LABS INC. closes at or below $93.35 on 7-Feb-2025. Based on our risk-neutral analysis, there is a 50.30% 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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