Quantchabot has detected a new Bear Call Spread trade opportunity for USA RARE EARTH INC. CLASS A (USAR) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
USAR was recently trading at $13.88 and has an implied volatility of 158.77% for this period. Based on an analysis of the options available for USAR expiring on 17-Apr-2025, there is a 37.49% likelihood that the underlying will close within the analyzed range of $12.95-$13.88 at expiration. In this scenario, the average linear return for the trade would be 14.29%.
Big -11.37% Change: After closing the last trading session at $15.66, USA RARE EARTH INC. CLASS A opened today at $16.33 and has reached a low of $13.41.
Trade approach: A movement as big as -11.37% is a significantly bearish indicator, so this trade is designed to be profitable if USAR maintains its current direction and does not revert back to pricing on the bullish side of $13.88 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 USA RARE EARTH INC. CLASS A closes at or below $14.25 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 66.82% 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.