The automated Quantcha Trade Ideas Service has detected a promising
FSLR was recently trading at $28.31 and has an implied volatility of 38.24% for this period. Based on an analysis of the options available for FSLR expiring on 21-Apr-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $25.73-$28.39 at expiration. In this scenario, the average linear return for the trade would be 54.72%.
52 week low: FIRST SOLAR INC recently reached a new 52-week low at $28.04. FSLR had traded in the range $28.05-$70.29 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 FSLR maintains its current direction and does not revert back to pricing on the bullish side of $28.31 on 21-Apr-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 FIRST SOLAR INC closes at or below $28.48 on 21-Apr-2017. Based on our risk-neutral analysis, there is a 51.34% 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.
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This is an automated post generated based on a market analysis of delayed data at 3/28/2017 3:20:25 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.