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Quantchabot has detected a promising Bear Call Spread trade opportunity for UNITY SOFTWARE INC (U) for the 6-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
U was recently trading at $62.76 and has an implied volatility of 101.69% for this period. Based on an analysis of the options available for U expiring on 6-May-2022, there is a 34.92% likelihood that the underlying will close within the analyzed range of $57.54-$62.76 at expiration. In this scenario, the average linear return for the trade would be 15.23%.
Big -7.53% Change: After closing the last trading session at $67.87, UNITY SOFTWARE INC opened today at $67.44 and has reached a low of $62.56.
Trade approach: A movement as big as -7.53% is a significantly bearish indicator, so this trade is designed to be profitable if U maintains its current direction and does not revert back to pricing on the bullish side of $62.76 on 6-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 UNITY SOFTWARE INC closes at or below $62.77 on 6-May-2022. Based on our risk-neutral analysis, there is a 50.06% 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.