Quantchabot has detected a new Covered Put trade opportunity for WERIDE INC. ADS (WRD) for the 16-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WRD was recently trading at $8.57 and has an implied volatility of 325.65% for this period. Based on an analysis of the options available for WRD expiring on 16-May-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $3.40-$8.60 at expiration. In this scenario, the average linear return for the trade would be 53.25%.
52 week low: WERIDE INC. ADS recently reached a new 52-week low at $8.53. WRD had traded in the range $8.60-$44.00 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 WRD maintains its current direction and does not revert back to pricing on the bullish side of $8.57 on 16-May-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 WERIDE INC. ADS closes at or below $8.88 on 16-May-2025. Based on our risk-neutral analysis, there is a 51.37% 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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