Quantchabot has detected a new Bear Call Spread trade opportunity for APPLE HOSPITALITY REIT INC (APLE) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APLE was recently trading at $13.32 and has an implied volatility of 31.29% for this period. Based on an analysis of the options available for APLE expiring on 17-Apr-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $12.14-$13.38 at expiration. In this scenario, the average linear return for the trade would be 52.78%.
52 week low: APPLE HOSPITALITY REIT INC recently reached a new 52-week low at $13.26. APLE had traded in the range $13.60-$16.98 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 APLE maintains its current direction and does not revert back to pricing on the bullish side of $13.32 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 APPLE HOSPITALITY REIT INC closes at or below $13.40 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 50.53% 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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