Quantchabot has detected a new Bear Call Spread trade opportunity for MP MATERIALS CORP (MP) for the 18-Jul-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MP was recently trading at $20.26 and has an implied volatility of 80.80% for this period. Based on an analysis of the options available for MP expiring on 18-Jul-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $15.27-$20.37 at expiration. In this scenario, the average linear return for the trade would be 19.49%.
Big -7.02% Change: After closing the last trading session at $21.79, MP MATERIALS CORP opened today at $22.87 and has reached a low of $20.19.
Trade approach: A movement as big as -7.02% is a significantly bearish indicator, so this trade is designed to be profitable if MP maintains its current direction and does not revert back to pricing on the bullish side of $20.26 on 18-Jul-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 MP MATERIALS CORP closes at or below $20.40 on 18-Jul-2025. Based on our risk-neutral analysis, there is a 50.17% 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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