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Quantchabot has detected a promising Bear Call Spread trade opportunity for COUER MINING INC (CDE) for the 17-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CDE was recently trading at $7.13 and has an implied volatility of 64.95% for this period. Based on an analysis of the options available for CDE expiring on 17-Jan-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.43-$7.13 at expiration. In this scenario, the average linear return for the trade would be 31.60%.
Big -7.47% Change: After closing the last trading session at $7.70, COUER MINING INC opened today at $7.65 and has reached a low of $7.12.
Trade approach: A movement as big as -7.47% is a significantly bearish indicator, so this trade is designed to be profitable if CDE maintains its current direction and does not revert back to pricing on the bullish side of $7.13 on 17-Jan-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 COUER MINING INC closes at or below $7.25 on 17-Jan-2020. Based on our risk-neutral analysis, there is a 56.51% 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.