The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for VIVINT SOLAR INC () for the 20-Oct-2017 expiration period. You can analyze the opportunity in depth over at the .
VSLR was recently trading at $4.55 and has an implied volatility of 67.46% for this period. Based on an analysis of the options available for VSLR expiring on 20-Oct-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $3.37-$4.55 at expiration. In this scenario, the average linear return for the trade would be 29.82%.
Big -7.15% Change: After closing the last trading session at $4.90, VIVINT SOLAR INC opened today at $4.75 and has reached a low of $4.50.
Trade approach: A movement as big as -7.15% is a significantly bearish indicator, so this trade is designed to be profitable if VSLR maintains its current direction and does not revert back to pricing on the bullish side of $4.55 on 20-Oct-2017. 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 VIVINT SOLAR INC closes at or below $4.75 on 20-Oct-2017. Based on our risk-neutral analysis, there is a 55.69% 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 .
This is an automated post generated based on a market analysis of delayed data at 8/10/2017 12:25:42 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.