Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for REE AUTOMOTIVE LTD. CLASS A ORDINARY SHARES (REE) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. REE was recently trading at $5.89 and has an implied volatility of 106.59% for this period. Based on an analysis of the options available for REE expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $4.73-$5.89 at expiration. In this scenario, the average linear return for the trade would be 23.29%. Big -8.26% Change: After closing the last trading session at $6.42, REE AUTOMOTIVE LTD. CLASS A ORDINARY SHARES opened today at $6.50 and has reached a low of $5.55. Trade approach: A movement as big as -8.26% is a significantly bearish indicator, so this trade is designed to be profitable if REE maintains its current direction and does not revert back to pricing on the bullish side of $5.89 on 21-Jan-2022. 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 REE AUTOMOTIVE LTD. CLASS A ORDINARY SHARES closes at or below $6.02 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 53.98% 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.