Quantchabot has detected a promising Bear Call Spread trade opportunity for CROWDSTRIKE HOLDINGS INC. CLASS A (CRWD) for the 18-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CRWD was recently trading at $169.63 and has an implied volatility of 57.51% for this period. Based on an analysis of the options available for CRWD expiring on 18-Nov-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $130.56-$170.53 at expiration. In this scenario, the average linear return for the trade would be 19.41%.
Big -7.11% Change: After closing the last trading session at $182.61, CROWDSTRIKE HOLDINGS INC. CLASS A opened today at $178.45 and has reached a low of $169.25.
Trade approach: A movement as big as -7.11% is a significantly bearish indicator, so this trade is designed to be profitable if CRWD maintains its current direction and does not revert back to pricing on the bullish side of $169.63 on 18-Nov-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 CROWDSTRIKE HOLDINGS INC. CLASS A closes at or below $170.62 on 18-Nov-2022. Based on our risk-neutral analysis, there is a 50.08% 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.