Quantchabot has detected a new Covered Put trade opportunity for MICROALGO INC. (MLGO) for the 23-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MLGO was recently trading at $1.59 and has an implied volatility of 290.97% for this period. Based on an analysis of the options available for MLGO expiring on 23-May-2025, there is a 34.40% likelihood that the underlying will close within the analyzed range of $1.04-$1.59 at expiration. In this scenario, the average linear return for the trade would be 24.37%.
Big -11.42% Change: After closing the last trading session at $1.79, MICROALGO INC. opened today at $1.79 and has reached a low of $1.57.
Trade approach: A movement as big as -11.42% is a significantly bearish indicator, so this trade is designed to be profitable if MLGO maintains its current direction and does not revert back to pricing on the bullish side of $1.59 on 23-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 MICROALGO INC. closes at or below $1.73 on 23-May-2025. Based on our risk-neutral analysis, there is a 57.92% 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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