Quantchabot has detected a new Bear Call Spread trade opportunity for PEABODY ENERGY CORP (BTU) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BTU was recently trading at $12.83 and has an implied volatility of 61.96% for this period. Based on an analysis of the options available for BTU expiring on 17-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $10.59-$12.89 at expiration. In this scenario, the average linear return for the trade would be 59.57%.
Big -7.10% Change: After closing the last trading session at $13.81, PEABODY ENERGY CORP opened today at $13.93 and has reached a low of $12.82.
Trade approach: A movement as big as -7.10% is a significantly bearish indicator, so this trade is designed to be profitable if BTU maintains its current direction and does not revert back to pricing on the bullish side of $12.83 on 17-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 PEABODY ENERGY CORP closes at or below $12.92 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 50.51% 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.