Big Loser Alert: Trading today’s -7.1% move in GAMESTOP $GME

Quantchabot has detected a promising Bear Call Spread trade opportunity for GAMESTOP (GME) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GME was recently trading at $19.88 and has an implied volatility of 108.77% for this period. Based on an analysis of the options available for GME expiring on 17-Mar-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $13.29-$20.02 at expiration. In this scenario, the average linear return for the trade would be 17.76%.

Big -7.10% Change: After closing the last trading session at $21.40, GAMESTOP opened today at $20.59 and has reached a low of $19.53.

Trade approach: A movement as big as -7.10% is a significantly bearish indicator, so this trade is designed to be profitable if GME maintains its current direction and does not revert back to pricing on the bullish side of $19.88 on 17-Mar-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 GAMESTOP closes at or below $20.03 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 50.07% 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.