Big Loser Alert: Trading today’s -8.7% move in LYFT INC. CLASS A COMMON STOCK $LYFT

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Quantchabot has detected a promising Bear Call Spread trade opportunity for LYFT INC. CLASS A COMMON STOCK (LYFT) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LYFT was recently trading at $49.23 and has an implied volatility of 42.35% for this period. Based on an analysis of the options available for LYFT expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $41.39-$49.37 at expiration. In this scenario, the average linear return for the trade would be 67.36%.

Big -8.74% Change: After closing the last trading session at $53.94, LYFT INC. CLASS A COMMON STOCK opened today at $51.25 and has reached a low of $48.54.

Trade approach: A movement as big as -8.74% is a significantly bearish indicator, so this trade is designed to be profitable if LYFT maintains its current direction and does not revert back to pricing on the bullish side of $49.23 on 17-Apr-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 LYFT INC. CLASS A COMMON STOCK closes at or below $49.66 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.31% 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.