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Quantchabot has detected a promising Bear Call Spread trade opportunity for LYFT INC. CLASS A COMMON STOCK (LYFT) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LYFT was recently trading at $20.24 and has an implied volatility of 69.77% for this period. Based on an analysis of the options available for LYFT expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $14.84-$20.26 at expiration. In this scenario, the average linear return for the trade would be 54.47%.
Big -34.20% Change: After closing the last trading session at $30.76, LYFT INC. CLASS A COMMON STOCK opened today at $22.27 and has reached a low of $20.21.
Trade approach: A movement as big as -34.20% is a significantly bearish indicator, so this trade is designed to be profitable if LYFT maintains its current direction and does not revert back to pricing on the bullish side of $20.24 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 LYFT INC. CLASS A COMMON STOCK closes at or below $20.62 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 52.26% 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.