Big Loser Alert: Trading today’s -9.4% move in NUSCALE POWER CORPORATION $SMR

Quantchabot has detected a new Bear Call Spread trade opportunity for NUSCALE POWER CORPORATION (SMR) for the 28-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SMR was recently trading at $19.68 and has an implied volatility of 111.06% for this period. Based on an analysis of the options available for SMR expiring on 28-Feb-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $13.09-$19.80 at expiration. In this scenario, the average linear return for the trade would be 147.58%.

Big -9.39% Change: After closing the last trading session at $21.72, NUSCALE POWER CORPORATION opened today at $20.53 and has reached a low of $18.65.

Trade approach: A movement as big as -9.39% is a significantly bearish indicator, so this trade is designed to be profitable if SMR maintains its current direction and does not revert back to pricing on the bullish side of $19.68 on 28-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 NUSCALE POWER CORPORATION closes at or below $20.20 on 28-Feb-2025. Based on our risk-neutral analysis, there is a 51.92% 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.


Posted

in

by

Tags:

Comments

Leave a Reply