Quantchabot has detected a new Bear Call Spread trade opportunity for ALIGN TECHNOLOGY (ALGN) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ALGN was recently trading at $160.40 and has an implied volatility of 52.94% for this period. Based on an analysis of the options available for ALGN expiring on 25-Apr-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $133.77-$161.30 at expiration. In this scenario, the average linear return for the trade would be 41.32%.
52 week low: ALIGN TECHNOLOGY recently reached a new 52-week low at $160.19. ALGN had traded in the range $167.32-$335.40 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if ALGN maintains its current direction and does not revert back to pricing on the bullish side of $160.40 on 25-Apr-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 ALIGN TECHNOLOGY closes at or below $163.00 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 52.25% 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.
Leave a Reply
You must be logged in to post a comment.