Quantchabot has detected a promising Bear Call Spread trade opportunity for AUTODESK (ADSK) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ADSK was recently trading at $192.53 and has an implied volatility of 40.82% for this period. Based on an analysis of the options available for ADSK expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $164.52-$193.79 at expiration. In this scenario, the average linear return for the trade would be 21.20%.
Big -7.83% Change: After closing the last trading session at $208.90, AUTODESK opened today at $190.75 and has reached a low of $188.01.
Trade approach: A movement as big as -7.83% is a significantly bearish indicator, so this trade is designed to be profitable if ADSK maintains its current direction and does not revert back to pricing on the bullish side of $192.53 on 20-Jan-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 AUTODESK closes at or below $193.90 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 50.14% 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.