Quantchabot has detected a new Bear Call Spread trade opportunity for GEO GROUP (GEO) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GEO was recently trading at $28.61 and has an implied volatility of 69.35% for this period. Based on an analysis of the options available for GEO expiring on 21-Feb-2025, there is a 34.28% likelihood that the underlying will close within the analyzed range of $24.62-$28.68 at expiration. In this scenario, the average linear return for the trade would be 23.15%.
Big -7.60% Change: After closing the last trading session at $30.97, GEO GROUP opened today at $30.41 and has reached a low of $28.37.
Trade approach: A movement as big as -7.60% is a significantly bearish indicator, so this trade is designed to be profitable if GEO maintains its current direction and does not revert back to pricing on the bullish side of $28.61 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 GEO GROUP closes at or below $28.70 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 50.22% 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.