Big Loser Alert: Trading today’s -8.9% move in MONGODB INC. CLASS A COMMON STOCK $MDB

Quantchabot has detected a promising Bear Call Spread trade opportunity for MONGODB INC. CLASS A COMMON STOCK (MDB) for the 3-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MDB was recently trading at $182.02 and has an implied volatility of 59.41% for this period. Based on an analysis of the options available for MDB expiring on 3-Mar-2023, there is a 34.20% likelihood that the underlying will close within the analyzed range of $151.11-$182.93 at expiration. In this scenario, the average linear return for the trade would be 16.03%.

Big -8.94% Change: After closing the last trading session at $199.88, MONGODB INC. CLASS A COMMON STOCK opened today at $190.61 and has reached a low of $179.52.

Trade approach: A movement as big as -8.94% is a significantly bearish indicator, so this trade is designed to be profitable if MDB maintains its current direction and does not revert back to pricing on the bullish side of $182.02 on 3-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 MONGODB INC. CLASS A COMMON STOCK closes at or below $183.53 on 3-Mar-2023. Based on our risk-neutral analysis, there is a 50.69% 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.