Big Loser Alert: Trading today’s -8.0% move in MICROSTRATEGY $MSTR

Quantchabot has detected a promising Bear Call Spread trade opportunity for MICROSTRATEGY (MSTR) for the 21-Jul-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MSTR was recently trading at $300.50 and has an implied volatility of 72.90% for this period. Based on an analysis of the options available for MSTR expiring on 21-Jul-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $218.65-$304.06 at expiration. In this scenario, the average linear return for the trade would be 23.43%.

Big -8.03% Change: After closing the last trading session at $326.72, MICROSTRATEGY opened today at $311.15 and has reached a low of $298.18.

Trade approach: A movement as big as -8.03% is a significantly bearish indicator, so this trade is designed to be profitable if MSTR maintains its current direction and does not revert back to pricing on the bullish side of $300.50 on 21-Jul-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 MICROSTRATEGY closes at or below $304.15 on 21-Jul-2023. Based on our risk-neutral analysis, there is a 50.04% 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.






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