Quantchabot has detected a new Bear Put Spread trade opportunity for DAQO NEW ENERGY (DQ) for the 16-Oct-2026 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DQ was recently trading at $13.79 and has an implied volatility of 77.39% for this period. Based on an analysis of the options available for DQ expiring on 16-Oct-2026, there is a 34.17% likelihood that the underlying will close within the analyzed range of $10.23-$13.87 at expiration. In this scenario, the average linear return for the trade would be 20.70%.
Big -7.98% Change: After closing the last trading session at $14.98, DAQO NEW ENERGY opened today at $15.00 and has reached a low of $13.76.
Trade approach: A movement as big as -7.98% is a significantly bearish indicator, so this trade is designed to be profitable if DQ maintains its current direction and does not revert back to pricing on the bullish side of $13.79 on 16-Oct-2026. 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 DAQO NEW ENERGY closes at or below $13.95 on 16-Oct-2026. Based on our risk-neutral analysis, there is a 50.77% 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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