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Quantchabot has detected a promising Bear Call Spread trade opportunity for YANDEX (YNDX) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
YNDX was recently trading at $73.70 and has an implied volatility of 36.90% for this period. Based on an analysis of the options available for YNDX expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $63.44-$73.71 at expiration. In this scenario, the average linear return for the trade would be 54.76%.
Big -9.07% Change: After closing the last trading session at $81.05, YANDEX opened today at $79.00 and has reached a low of $73.57.
Trade approach: A movement as big as -9.07% is a significantly bearish indicator, so this trade is designed to be profitable if YNDX maintains its current direction and does not revert back to pricing on the bullish side of $73.70 on 21-Jan-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 YANDEX closes at or below $74.00 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 51.04% 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.