Quantchabot has detected a new Bear Put Spread trade opportunity for FORESTAR GROUP (FOR) for the 21-Mar-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FOR was recently trading at $23.06 and has an implied volatility of 42.97% for this period. Based on an analysis of the options available for FOR expiring on 21-Mar-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $19.92-$23.19 at expiration. In this scenario, the average linear return for the trade would be 13.23%.
52 week low: FORESTAR GROUP recently reached a new 52-week low at $22.67. FOR had traded in the range $23.32-$40.92 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if FOR maintains its current direction and does not revert back to pricing on the bullish side of $23.06 on 21-Mar-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 FORESTAR GROUP closes at or below $23.45 on 21-Mar-2025. Based on our risk-neutral analysis, there is a 52.95% 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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