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Quantchabot has detected a promising Bear Call Spread trade opportunity for YY INC. (YY) for the 29-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
YY was recently trading at $54.84 and has an implied volatility of 63.17% for this period. Based on an analysis of the options available for YY expiring on 29-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $44.01-$54.84 at expiration. In this scenario, the average linear return for the trade would be 42.56%.
Big -11.62% Change: After closing the last trading session at $62.05, YY INC. opened today at $60.83 and has reached a low of $54.68.
Trade approach: A movement as big as -11.62% is a significantly bearish indicator, so this trade is designed to be profitable if YY maintains its current direction and does not revert back to pricing on the bullish side of $54.84 on 29-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 YY INC. closes at or below $55.00 on 29-Oct-2021. Based on our risk-neutral analysis, there is a 50.51% 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.