Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for SHOPIFY INC (SHOP) for the 11-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SHOP was recently trading at $1,085.07 and has an implied volatility of 53.00% for this period. Based on an analysis of the options available for SHOP expiring on 11-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $933.98-$1,085.10 at expiration. In this scenario, the average linear return for the trade would be 55.06%.
Big -7.16% Change: After closing the last trading session at $1,168.76, SHOPIFY INC opened today at $1,170.00 and has reached a low of $1,071.25.
Trade approach: A movement as big as -7.16% is a significantly bearish indicator, so this trade is designed to be profitable if SHOP maintains its current direction and does not revert back to pricing on the bullish side of $1,085.07 on 11-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 SHOPIFY INC closes at or below $1,086.40 on 11-Feb-2022. Based on our risk-neutral analysis, there is a 50.32% 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.