Big Loser Alert: Trading today’s -8.6% move in COINBASE GLOBAL INC. CLASS A $COIN

Quantchabot has detected a promising Bear Call Spread trade opportunity for COINBASE GLOBAL INC. CLASS A (COIN) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

COIN was recently trading at $41.39 and has an implied volatility of 117.64% for this period. Based on an analysis of the options available for COIN expiring on 17-Feb-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $23.40-$41.80 at expiration. In this scenario, the average linear return for the trade would be 25.19%.

Big -8.55% Change: After closing the last trading session at $45.26, COINBASE GLOBAL INC. CLASS A opened today at $43.60 and has reached a low of $41.11.

Trade approach: A movement as big as -8.55% 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 $41.39 on 17-Feb-2023. 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 closes at or below $42.02 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 50.37% 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.