Big Loser Alert: Trading today’s -11.4% move in KANZHUN LIMITED AMERICAN DEPOSITORY SHAR $BZ

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Quantchabot has detected a promising Synthetic Short Stock trade opportunity for KANZHUN LIMITED AMERICAN DEPOSITORY SHAR (BZ) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BZ was recently trading at $32.18 and has an implied volatility of 66.23% for this period. Based on an analysis of the options available for BZ expiring on 18-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $26.04-$32.18 at expiration. In this scenario, the average linear return for the trade would be 46.84%.

Big -11.45% Change: After closing the last trading session at $36.34, KANZHUN LIMITED AMERICAN DEPOSITORY SHAR opened today at $36.54 and has reached a low of $32.15.

Trade approach: A movement as big as -11.45% is a significantly bearish indicator, so this trade is designed to be profitable if BZ maintains its current direction and does not revert back to pricing on the bullish side of $32.18 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 KANZHUN LIMITED AMERICAN DEPOSITORY SHAR closes at or below $32.50 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 51.86% 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.