Quantchabot has detected a new Bear Call Spread trade opportunity for RH (RH) for the 21-Mar-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RH was recently trading at $219.44 and has an implied volatility of 82.47% for this period. Based on an analysis of the options available for RH expiring on 21-Mar-2025, there is a 34.37% likelihood that the underlying will close within the analyzed range of $193.41-$219.67 at expiration. In this scenario, the average linear return for the trade would be 29.97%.
Big -8.95% Change: After closing the last trading session at $241.02, RH opened today at $236.64 and has reached a low of $219.03.
Trade approach: A movement as big as -8.95% is a significantly bearish indicator, so this trade is designed to be profitable if RH maintains its current direction and does not revert back to pricing on the bullish side of $219.44 on 21-Mar-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 RH closes at or below $219.75 on 21-Mar-2025. Based on our risk-neutral analysis, there is a 50.12% 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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