Big Loser Alert: Trading today’s -7.6% move in BJ’S WHOLESALE CLUB HOLDINGS INC $BJ

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Quantchabot has detected a promising Bear Call Spread trade opportunity for BJ’S WHOLESALE CLUB HOLDINGS INC (BJ) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BJ was recently trading at $59.98 and has an implied volatility of 36.27% for this period. Based on an analysis of the options available for BJ expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $53.58-$59.98 at expiration. In this scenario, the average linear return for the trade would be 47.06%.

Big -7.55% Change: After closing the last trading session at $64.88, BJ’S WHOLESALE CLUB HOLDINGS INC opened today at $59.99 and has reached a low of $58.59.

Trade approach: A movement as big as -7.55% is a significantly bearish indicator, so this trade is designed to be profitable if BJ maintains its current direction and does not revert back to pricing on the bullish side of $59.98 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 BJ’S WHOLESALE CLUB HOLDINGS INC closes at or below $61.60 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 59.32% 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.