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Quantchabot has detected a promising Short Risk Reversal trade opportunity for DOORDASH INC (DASH) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DASH was recently trading at $199.19 and has an implied volatility of 50.48% for this period. Based on an analysis of the options available for DASH expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $155.43-$199.24 at expiration. In this scenario, the average linear return for the trade would be 62.80%.
Big -7.46% Change: After closing the last trading session at $215.25, DOORDASH INC opened today at $217.95 and has reached a low of $199.02.
Trade approach: A movement as big as -7.46% is a significantly bearish indicator, so this trade is designed to be profitable if DASH maintains its current direction and does not revert back to pricing on the bullish side of $199.19 on 18-Feb-2022. 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 DOORDASH INC closes at or below $203.84 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 53.67% 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.