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Quantchabot has detected a promising Bear Call Spread trade opportunity for UBER TECHNOLOGIES INC (UBER) for the 30-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UBER was recently trading at $54.14 and has an implied volatility of 58.96% for this period. Based on an analysis of the options available for UBER expiring on 30-Apr-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $52.27-$54.14 at expiration. In this scenario, the average linear return for the trade would be 62.82%.
Big -7.36% Change: After closing the last trading session at $58.44, UBER TECHNOLOGIES INC opened today at $59.00 and has reached a low of $53.11.
Trade approach: A movement as big as -7.36% is a significantly bearish indicator, so this trade is designed to be profitable if UBER maintains its current direction and does not revert back to pricing on the bullish side of $54.14 on 30-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 UBER TECHNOLOGIES INC closes at or below $54.39 on 30-Apr-2021. Based on our risk-neutral analysis, there is a 55.21% 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.