Quantchabot has detected a new Bear Put Spread trade opportunity for APPLIED DIGITAL INC (APLD) for the 10-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APLD was recently trading at $8.71 and has an implied volatility of 97.07% for this period. Based on an analysis of the options available for APLD expiring on 10-Jan-2025, there is a 35.79% likelihood that the underlying will close within the analyzed range of $8.16-$8.71 at expiration. In this scenario, the average linear return for the trade would be 33.02%.
Big -7.59% Change: After closing the last trading session at $9.42, APPLIED DIGITAL INC opened today at $9.16 and has reached a low of $8.32.
Trade approach: A movement as big as -7.59% is a significantly bearish indicator, so this trade is designed to be profitable if APLD maintains its current direction and does not revert back to pricing on the bullish side of $8.71 on 10-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 bearish strategy, the trade would be profitable if APPLIED DIGITAL INC closes at or below $8.78 on 10-Jan-2025. Based on our risk-neutral analysis, there is a 55.49% 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.
Leave a Reply
You must be logged in to post a comment.