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Quantchabot has detected a promising Bear Call Spread trade opportunity for EXPEDIA (EXPE) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EXPE was recently trading at $156.30 and has an implied volatility of 49.74% for this period. Based on an analysis of the options available for EXPE expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $125.09-$156.43 at expiration. In this scenario, the average linear return for the trade would be 18.19%.
Big -10.59% Change: After closing the last trading session at $174.81, EXPEDIA opened today at $168.40 and has reached a low of $152.71.
Trade approach: A movement as big as -10.59% is a significantly bearish indicator, so this trade is designed to be profitable if EXPE maintains its current direction and does not revert back to pricing on the bullish side of $156.30 on 15-Jul-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 EXPEDIA closes at or below $156.62 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.22% 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.