Quantchabot has detected a new Bear Call Spread trade opportunity for HUMANA (HUM) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HUM was recently trading at $260.79 and has an implied volatility of 46.54% for this period. Based on an analysis of the options available for HUM expiring on 25-Apr-2025, there is a 34.38% likelihood that the underlying will close within the analyzed range of $242.93-$261.06 at expiration. In this scenario, the average linear return for the trade would be 33.36%.
Big -8.69% Change: After closing the last trading session at $285.61, HUMANA opened today at $256.96 and has reached a low of $256.04.
Trade approach: A movement as big as -8.69% is a significantly bearish indicator, so this trade is designed to be profitable if HUM maintains its current direction and does not revert back to pricing on the bullish side of $260.79 on 25-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 HUMANA closes at or below $261.35 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 50.63% 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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