52-Week Low Alert: Trading today’s movement in COUPANG INC $CPNG

Quantcha now offering unlimited commission-free options trading.

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 $24.95 and has an implied volatility of 56.08% 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 $20.48-$24.95 at expiration. In this scenario, the average linear return for the trade would be 44.38%.

52 week low: COUPANG INC recently reached a new 52-week low at $23.88. CPNG had traded in the range $24.51-$69.00 over the past year.

Trade approach: Reaching a new 52-week low is a 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 $24.95 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 $25.00 on 25-Feb-2022. Based on our risk-neutral analysis, there is a 50.39% 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.