Big Loser Alert: Trading today’s -7.8% move in KE HOLDINGS INC $BEKE

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Quantchabot has detected a promising Bear Put Spread trade opportunity for KE HOLDINGS INC (BEKE) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BEKE was recently trading at $21.00 and has an implied volatility of 84.62% for this period. Based on an analysis of the options available for BEKE expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.08-$21.00 at expiration. In this scenario, the average linear return for the trade would be 69.50%.

Big -7.81% Change: After closing the last trading session at $22.78, KE HOLDINGS INC opened today at $21.70 and has reached a low of $20.94.

Trade approach: A movement as big as -7.81% is a significantly bearish indicator, so this trade is designed to be profitable if BEKE maintains its current direction and does not revert back to pricing on the bullish side of $21.00 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 KE HOLDINGS INC closes at or below $21.09 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.63% 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.