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Quantchabot has detected a promising Bear Call Spread trade opportunity for BRC INC (BRCC) for the 13-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BRCC was recently trading at $13.79 and has an implied volatility of 152.29% for this period. Based on an analysis of the options available for BRCC expiring on 13-May-2022, there is a 34.31% likelihood that the underlying will close within the analyzed range of $10.50-$13.79 at expiration. In this scenario, the average linear return for the trade would be 24.58%.
Big -7.48% Change: After closing the last trading session at $14.90, BRC INC opened today at $14.89 and has reached a low of $13.61.
Trade approach: A movement as big as -7.48% is a significantly bearish indicator, so this trade is designed to be profitable if BRCC maintains its current direction and does not revert back to pricing on the bullish side of $13.79 on 13-May-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 BRC INC closes at or below $13.80 on 13-May-2022. Based on our risk-neutral analysis, there is a 50.14% 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.