Quantchabot has detected a new Bear Call Spread trade opportunity for GROUP 1 AUTOMOTIVE (GPI) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GPI was recently trading at $399.60 and has an implied volatility of 38.17% for this period. Based on an analysis of the options available for GPI expiring on 17-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $356.24-$401.34 at expiration. In this scenario, the average linear return for the trade would be 14.33%.
Big -7.06% Change: After closing the last trading session at $429.94, GROUP 1 AUTOMOTIVE opened today at $426.76 and has reached a low of $396.53.
Trade approach: A movement as big as -7.06% is a significantly bearish indicator, so this trade is designed to be profitable if GPI maintains its current direction and does not revert back to pricing on the bullish side of $399.60 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 GROUP 1 AUTOMOTIVE closes at or below $402.75 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 51.18% 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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