Big Loser Alert: Trading today’s -7.2% move in DOORDASH INC $DASH

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Quantchabot has detected a promising Bear Call Spread 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 $122.74 and has an implied volatility of 65.75% 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 $98.92-$122.75 at expiration. In this scenario, the average linear return for the trade would be 53.25%.

Big -7.20% Change: After closing the last trading session at $132.27, DOORDASH INC opened today at $129.97 and has reached a low of $121.49.

Trade approach: A movement as big as -7.20% 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 $122.74 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 $122.80 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.08% 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.