Quantchabot has detected a promising Bear Call Spread trade opportunity for COINBASE GLOBAL INC. CLASS A COMMON STOCK (COIN) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
COIN was recently trading at $52.93 and has an implied volatility of 128.63% for this period. Based on an analysis of the options available for COIN expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $35.06-$52.99 at expiration. In this scenario, the average linear return for the trade would be 21.12%.
Big -7.92% Change: After closing the last trading session at $57.49, COINBASE GLOBAL INC. CLASS A COMMON STOCK opened today at $53.87 and has reached a low of $52.42.
Trade approach: A movement as big as -7.92% is a significantly bearish indicator, so this trade is designed to be profitable if COIN maintains its current direction and does not revert back to pricing on the bullish side of $52.93 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 COINBASE GLOBAL INC. CLASS A COMMON STOCK closes at or below $53.00 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 50.01% 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.