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Quantchabot has detected a promising Bear Put Spread trade opportunity for ROYAL CARIBBEAN GROUP (RCL) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RCL was recently trading at $62.47 and has an implied volatility of 69.12% for this period. Based on an analysis of the options available for RCL expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $58.44-$62.47 at expiration. In this scenario, the average linear return for the trade would be 76.06%.
Big -10.55% Change: After closing the last trading session at $69.83, ROYAL CARIBBEAN GROUP opened today at $64.19 and has reached a low of $62.11.
Trade approach: A movement as big as -10.55% is a significantly bearish indicator, so this trade is designed to be profitable if RCL maintains its current direction and does not revert back to pricing on the bullish side of $62.47 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 ROYAL CARIBBEAN GROUP closes at or below $62.47 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 50.04% 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.