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Quantchabot has detected a promising Covered Put trade opportunity for ENTERCOM COMMUNICATIONS (ETM) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ETM was recently trading at $1.55 and has an implied volatility of 118.48% for this period. Based on an analysis of the options available for ETM expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $0.97-$1.55 at expiration. In this scenario, the average linear return for the trade would be 18.18%.

Big -7.19% Change: After closing the last trading session at $1.67, ENTERCOM COMMUNICATIONS opened today at $1.66 and has reached a low of $1.54.

Trade approach: A movement as big as -7.19% is a significantly bearish indicator, so this trade is designed to be profitable if ETM maintains its current direction and does not revert back to pricing on the bullish side of $1.55 on 16-Oct-2020. 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 ENTERCOM COMMUNICATIONS closes at or below $2.05 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 72.59% 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.