Quantchabot has detected a promising Bear Call Spread trade opportunity for UBER TECHNOLOGIES INC (UBER) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UBER was recently trading at $21.82 and has an implied volatility of 71.67% for this period. Based on an analysis of the options available for UBER expiring on 29-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $16.91-$21.86 at expiration. In this scenario, the average linear return for the trade would be 23.46%.
Big -7.99% Change: After closing the last trading session at $23.72, UBER TECHNOLOGIES INC opened today at $22.22 and has reached a low of $21.34.
Trade approach: A movement as big as -7.99% is a significantly bearish indicator, so this trade is designed to be profitable if UBER maintains its current direction and does not revert back to pricing on the bullish side of $21.82 on 29-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 UBER TECHNOLOGIES INC closes at or below $21.86 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 50.03% 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.