Big Loser Alert: Trading today’s -7.4% move in AURORA INNOVATION INC. CLASS A COMMON STOCK $AUR

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Quantchabot has detected a promising Bear Put Spread trade opportunity for AURORA INNOVATION INC. CLASS A COMMON STOCK (AUR) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AUR was recently trading at $8.01 and has an implied volatility of 83.08% for this period. Based on an analysis of the options available for AUR expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.10-$8.01 at expiration. In this scenario, the average linear return for the trade would be 31.44%.

Big -7.40% Change: After closing the last trading session at $8.65, AURORA INNOVATION INC. CLASS A COMMON STOCK opened today at $8.48 and has reached a low of $8.00.

Trade approach: A movement as big as -7.40% is a significantly bearish indicator, so this trade is designed to be profitable if AUR maintains its current direction and does not revert back to pricing on the bullish side of $8.01 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 AURORA INNOVATION INC. CLASS A COMMON STOCK closes at or below $8.15 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 52.53% 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.