Quantchabot has detected a new Bear Call Spread trade opportunity for HIMS AND HERS HEALTH INC (HIMS) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HIMS was recently trading at $27.23 and has an implied volatility of 96.34% for this period. Based on an analysis of the options available for HIMS expiring on 2-May-2025, there is a 34.26% likelihood that the underlying will close within the analyzed range of $22.22-$27.28 at expiration. In this scenario, the average linear return for the trade would be 46.44%.
Big -7.59% Change: After closing the last trading session at $29.46, HIMS AND HERS HEALTH INC opened today at $28.65 and has reached a low of $27.19.
Trade approach: A movement as big as -7.59% is a significantly bearish indicator, so this trade is designed to be profitable if HIMS maintains its current direction and does not revert back to pricing on the bullish side of $27.23 on 2-May-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 HIMS AND HERS HEALTH INC closes at or below $27.28 on 2-May-2025. Based on our risk-neutral analysis, there is a 50.00% 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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