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Quantchabot has detected a promising Bear Call Spread trade opportunity for MARATHON DIGITAL HOLDINGS INC (MARA) for the 14-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MARA was recently trading at $33.06 and has an implied volatility of 127.41% for this period. Based on an analysis of the options available for MARA expiring on 14-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $26.67-$33.06 at expiration. In this scenario, the average linear return for the trade would be 58.85%.
Big -8.72% Change: After closing the last trading session at $36.22, MARATHON DIGITAL HOLDINGS INC opened today at $34.88 and has reached a low of $32.55.
Trade approach: A movement as big as -8.72% is a significantly bearish indicator, so this trade is designed to be profitable if MARA maintains its current direction and does not revert back to pricing on the bullish side of $33.06 on 14-May-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 MARATHON DIGITAL HOLDINGS INC closes at or below $33.29 on 14-May-2021. Based on our risk-neutral analysis, there is a 51.28% 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.