Quantchabot has detected a new Bear Call Spread trade opportunity for NUSCALE POWER CORPORATION (SMR) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SMR was recently trading at $23.95 and has an implied volatility of 88.33% for this period. Based on an analysis of the options available for SMR expiring on 21-Feb-2025, there is a 34.43% likelihood that the underlying will close within the analyzed range of $20.92-$23.98 at expiration. In this scenario, the average linear return for the trade would be 28.97%.
Big -9.27% Change: After closing the last trading session at $26.40, NUSCALE POWER CORPORATION opened today at $26.40 and has reached a low of $23.75.
Trade approach: A movement as big as -9.27% is a significantly bearish indicator, so this trade is designed to be profitable if SMR maintains its current direction and does not revert back to pricing on the bullish side of $23.95 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 NUSCALE POWER CORPORATION closes at or below $23.98 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 50.03% 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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