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Quantchabot has detected a promising Bear Call Spread trade opportunity for THE TRADE DESK INC. CLASS A COMMON STOCK (TTD) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TTD was recently trading at $773.08 and has an implied volatility of 55.52% for this period. Based on an analysis of the options available for TTD expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $626.70-$773.20 at expiration. In this scenario, the average linear return for the trade would be 56.83%.
Big -8.54% Change: After closing the last trading session at $845.22, THE TRADE DESK INC. CLASS A COMMON STOCK opened today at $810.00 and has reached a low of $745.01.
Trade approach: A movement as big as -8.54% is a significantly bearish indicator, so this trade is designed to be profitable if TTD maintains its current direction and does not revert back to pricing on the bullish side of $773.08 on 16-Apr-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 THE TRADE DESK INC. CLASS A COMMON STOCK closes at or below $774.10 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 50.22% 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.