Big Loser Alert: Trading today’s -8.6% move in COUPANG INC $CPNG

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Quantchabot has detected a promising Bear Put Spread trade opportunity for COUPANG INC (CPNG) for the 25-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CPNG was recently trading at $23.73 and has an implied volatility of 61.12% for this period. Based on an analysis of the options available for CPNG expiring on 25-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $19.09-$23.74 at expiration. In this scenario, the average linear return for the trade would be 44.80%.

Big -8.61% Change: After closing the last trading session at $25.97, COUPANG INC opened today at $25.56 and has reached a low of $23.73.

Trade approach: A movement as big as -8.61% is a significantly bearish indicator, so this trade is designed to be profitable if CPNG maintains its current direction and does not revert back to pricing on the bullish side of $23.73 on 25-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 COUPANG INC closes at or below $23.78 on 25-Feb-2022. Based on our risk-neutral analysis, there is a 50.34% 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.