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Quantchabot has detected a promising Bear Call Spread trade opportunity for ROBINHOOD MARKETS INC (HOOD) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HOOD was recently trading at $9.73 and has an implied volatility of 87.22% for this period. Based on an analysis of the options available for HOOD expiring on 17-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $7.15-$9.74 at expiration. In this scenario, the average linear return for the trade would be 13.56%.
Big -7.11% Change: After closing the last trading session at $10.48, ROBINHOOD MARKETS INC opened today at $10.12 and has reached a low of $9.72.
Trade approach: A movement as big as -7.11% is a significantly bearish indicator, so this trade is designed to be profitable if HOOD maintains its current direction and does not revert back to pricing on the bullish side of $9.73 on 17-Jun-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 ROBINHOOD MARKETS INC closes at or below $9.74 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 50.00% 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.