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Quantchabot has detected a promising Bear Call Spread trade opportunity for 3D SYSTEMS (DDD) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DDD was recently trading at $44.43 and has an implied volatility of 109.60% for this period. Based on an analysis of the options available for DDD expiring on 19-Feb-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $40.76-$44.43 at expiration. In this scenario, the average linear return for the trade would be 44.92%.
Big -7.15% Change: After closing the last trading session at $47.85, 3D SYSTEMS opened today at $46.13 and has reached a low of $43.00.
Trade approach: A movement as big as -7.15% is a significantly bearish indicator, so this trade is designed to be profitable if DDD maintains its current direction and does not revert back to pricing on the bullish side of $44.43 on 19-Feb-2021. 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 3D SYSTEMS closes at or below $44.45 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 50.21% 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.