Big Loser Alert: Trading today’s -10.0% move in SOFI TECHNOLOGIES INC $SOFI

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

SOFI was recently trading at $4.52 and has an implied volatility of 63.52% for this period. Based on an analysis of the options available for SOFI expiring on 21-Jul-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $3.47-$4.57 at expiration. In this scenario, the average linear return for the trade would be 47.95%.

Big -10.00% Change: After closing the last trading session at $5.02, SOFI TECHNOLOGIES INC opened today at $4.68 and has reached a low of $4.47.

Trade approach: A movement as big as -10.00% is a significantly bearish indicator, so this trade is designed to be profitable if SOFI maintains its current direction and does not revert back to pricing on the bullish side of $4.52 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 SOFI TECHNOLOGIES INC closes at or below $4.59 on 21-Jul-2023. Based on our risk-neutral analysis, there is a 50.70% 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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