Big Loser Alert: Trading today’s -8.7% move in BILIBILI INC. ADS $BILI

Quantchabot has detected a promising Bear Call Spread trade opportunity for BILIBILI INC. ADS (BILI) for the 25-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BILI was recently trading at $13.45 and has an implied volatility of 101.76% for this period. Based on an analysis of the options available for BILI expiring on 25-Nov-2022, there is a 34.70% likelihood that the underlying will close within the analyzed range of $11.98-$13.45 at expiration. In this scenario, the average linear return for the trade would be 13.81%.

Big -8.66% Change: After closing the last trading session at $14.72, BILIBILI INC. ADS opened today at $14.21 and has reached a low of $13.44.

Trade approach: A movement as big as -8.66% is a significantly bearish indicator, so this trade is designed to be profitable if BILI maintains its current direction and does not revert back to pricing on the bullish side of $13.45 on 25-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 BILIBILI INC. ADS closes at or below $13.46 on 25-Nov-2022. Based on our risk-neutral analysis, there is a 50.22% 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.