Quantchabot has detected a new Secured Put trade opportunity for POLESTAR AUTOMOTIVE HOLDING UK PLC CLASS A ADS (PSNY) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PSNY was recently trading at $1.00 and has an implied volatility of 145.15% for this period. Based on an analysis of the options available for PSNY expiring on 17-Jan-2025, there is a 34.22% likelihood that the underlying will close within the analyzed range of $1.01-$1.51 at expiration. In this scenario, the average linear return for the trade would be 17.65%.
Big 7.26% Change: After closing the last trading session at $0.94, POLESTAR AUTOMOTIVE HOLDING UK PLC CLASS A ADS opened today at $0.93 and has reached a high of $1.02.
Trade approach: A movement as big as 7.26% is a significantly bullish indicator, so this trade is designed to be profitable if PSNY maintains its current direction and does not revert back to pricing on the bearish side of $1.00 on 17-Jan-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if POLESTAR AUTOMOTIVE HOLDING UK PLC CLASS A ADS closes at or above $0.85 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 66.36% 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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