Quantchabot has detected a promising Bear Call Spread trade opportunity for MATCH GROUP (MTCH) for the 16-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MTCH was recently trading at $60.12 and has an implied volatility of 53.74% for this period. Based on an analysis of the options available for MTCH expiring on 16-Sep-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $49.95-$60.29 at expiration. In this scenario, the average linear return for the trade would be 19.95%.
Big -21.63% Change: After closing the last trading session at $76.71, MATCH GROUP opened today at $60.06 and has reached a low of $59.15.
Trade approach: A movement as big as -21.63% is a significantly bearish indicator, so this trade is designed to be profitable if MTCH maintains its current direction and does not revert back to pricing on the bullish side of $60.12 on 16-Sep-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 MATCH GROUP closes at or below $60.31 on 16-Sep-2022. Based on our risk-neutral analysis, there is a 50.09% 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.