Quantchabot has detected a new Bear Call Spread trade opportunity for KRATOS DEFENSE & SECURITY (KTOS) for the 24-Oct-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
KTOS was recently trading at $82.81 and has an implied volatility of 79.99% for this period. Based on an analysis of the options available for KTOS expiring on 24-Oct-2025, there is a 34.93% likelihood that the underlying will close within the analyzed range of $77.33-$82.84 at expiration. In this scenario, the average linear return for the trade would be 24.08%.
Big -8.62% Change: After closing the last trading session at $90.62, KRATOS DEFENSE & SECURITY opened today at $90.00 and has reached a low of $82.00.
Trade approach: A movement as big as -8.62% is a significantly bearish indicator, so this trade is designed to be profitable if KTOS maintains its current direction and does not revert back to pricing on the bullish side of $82.81 on 24-Oct-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 KRATOS DEFENSE & SECURITY closes at or below $82.90 on 24-Oct-2025. Based on our risk-neutral analysis, there is a 50.48% 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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