Quantchabot has detected a new Bear Call Spread trade opportunity for POWER INTEGRATIONS (POWI) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
POWI was recently trading at $54.99 and has an implied volatility of 50.32% for this period. Based on an analysis of the options available for POWI expiring on 17-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $47.01-$55.24 at expiration. In this scenario, the average linear return for the trade would be 41.66%.
Big -7.38% Change: After closing the last trading session at $59.37, POWER INTEGRATIONS opened today at $59.40 and has reached a low of $54.92.
Trade approach: A movement as big as -7.38% is a significantly bearish indicator, so this trade is designed to be profitable if POWI maintains its current direction and does not revert back to pricing on the bullish side of $54.99 on 17-Apr-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 POWER INTEGRATIONS closes at or below $57.15 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 58.34% 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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