Quantchabot has detected a promising Bear Call Spread trade opportunity for ZILLOW GROUP INC. CLASS C (Z) for the 3-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
Z was recently trading at $41.22 and has an implied volatility of 54.38% for this period. Based on an analysis of the options available for Z expiring on 3-Feb-2023, there is a 34.40% likelihood that the underlying will close within the analyzed range of $37.77-$41.27 at expiration. In this scenario, the average linear return for the trade would be 21.24%.
Big -7.62% Change: After closing the last trading session at $44.62, ZILLOW GROUP INC. CLASS C opened today at $43.24 and has reached a low of $41.22.
Trade approach: A movement as big as -7.62% is a significantly bearish indicator, so this trade is designed to be profitable if Z maintains its current direction and does not revert back to pricing on the bullish side of $41.22 on 3-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 ZILLOW GROUP INC. CLASS C closes at or below $41.28 on 3-Feb-2023. Based on our risk-neutral analysis, there is a 50.09% 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.