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Quantchabot has detected a promising Bear Put Spread trade opportunity for TAKE-TWO INTERACTIVE SFTW (TTWO) for the 27-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TTWO was recently trading at $113.98 and has an implied volatility of 32.91% for this period. Based on an analysis of the options available for TTWO expiring on 27-Mar-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $102.10-$114.24 at expiration. In this scenario, the average linear return for the trade would be 60.57%.
Big -10.77% Change: After closing the last trading session at $127.74, TAKE-TWO INTERACTIVE SFTW opened today at $116.00 and has reached a low of $113.30.
Trade approach: A movement as big as -10.77% is a significantly bearish indicator, so this trade is designed to be profitable if TTWO maintains its current direction and does not revert back to pricing on the bullish side of $113.98 on 27-Mar-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 TAKE-TWO INTERACTIVE SFTW closes at or below $114.40 on 27-Mar-2020. Based on our risk-neutral analysis, there is a 50.50% 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.