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Quantchabot has detected a promising Bear Call Spread trade opportunity for DUN AND BRADSTREET HOLDINGS INC (DNB) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DNB was recently trading at $17.68 and has an implied volatility of 30.61% for this period. Based on an analysis of the options available for DNB expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.17-$17.69 at expiration. In this scenario, the average linear return for the trade would be 24.42%.
52 week low: DUN AND BRADSTREET HOLDINGS INC recently reached a new 52-week low at $17.64. DNB had traded in the range $17.75-$29.55 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if DNB maintains its current direction and does not revert back to pricing on the bullish side of $17.68 on 15-Oct-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 DUN AND BRADSTREET HOLDINGS INC closes at or below $18.00 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 57.80% 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.