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Big Loser Alert: Trading today’s -8.3% move in FIRST SOLAR INC

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Quantchabot has detected a promising Bear Put Spread trade opportunity for FIRST SOLAR INC (FSLR) for the 14-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FSLR was recently trading at $53.91 and has an implied volatility of 33.09% for this period. Based on an analysis of the options available for FSLR expiring on 14-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $48.99-$53.98 at expiration. In this scenario, the average linear return for the trade would be 54.40%.

Big -8.29% Change: After closing the last trading session at $58.78, FIRST SOLAR INC opened today at $55.21 and has reached a low of $52.75.

Trade approach: A movement as big as -8.29% is a significantly 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 $53.91 on 14-Feb-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 FIRST SOLAR INC closes at or below $54.30 on 14-Feb-2020. Based on our risk-neutral analysis, there is a 52.41% 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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