Quantchabot has detected a promising Bear Call Spread trade opportunity for DOXIMITY INC (DOCS) for the 16-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DOCS was recently trading at $36.40 and has an implied volatility of 66.31% for this period. Based on an analysis of the options available for DOCS expiring on 16-Sep-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $29.09-$36.49 at expiration. In this scenario, the average linear return for the trade would be 26.84%.
Big -9.71% Change: After closing the last trading session at $40.31, DOXIMITY INC opened today at $34.65 and has reached a low of $33.73.
Trade approach: A movement as big as -9.71% is a significantly bearish indicator, so this trade is designed to be profitable if DOCS maintains its current direction and does not revert back to pricing on the bullish side of $36.40 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 DOXIMITY INC closes at or below $36.60 on 16-Sep-2022. Based on our risk-neutral analysis, there is a 50.53% 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.