Quantchabot has detected a new Bear Call Spread trade opportunity for INNOVATIVE INDUSTRIAL PROPERTIES INC (IIPR) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IIPR was recently trading at $76.09 and has an implied volatility of 45.29% for this period. Based on an analysis of the options available for IIPR expiring on 21-Feb-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $61.88-$74.78 at expiration. In this scenario, the average linear return for the trade would be 26.70%.
Big -20.19% Change: After closing the last trading session at $95.34, INNOVATIVE INDUSTRIAL PROPERTIES INC opened today at $74.00 and has reached a low of $70.88.
Trade approach: A movement as big as -20.19% is a significantly bearish indicator, so this trade is designed to be profitable if IIPR maintains its current direction and does not revert back to pricing on the bullish side of $76.09 on 21-Feb-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 INNOVATIVE INDUSTRIAL PROPERTIES INC closes at or below $75.25 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 51.33% 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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