Quantchabot has detected a promising Bear Call Spread trade opportunity for TILRAY BRANDS INC (TLRY) for the 15-Dec-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TLRY was recently trading at $3.03 and has an implied volatility of 98.19% for this period. Based on an analysis of the options available for TLRY expiring on 15-Dec-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $1.86-$3.08 at expiration. In this scenario, the average linear return for the trade would be 38.37%.
Big -8.46% Change: After closing the last trading session at $3.31, TILRAY BRANDS INC opened today at $3.22 and has reached a low of $2.97.
Trade approach: A movement as big as -8.46% is a significantly bearish indicator, so this trade is designed to be profitable if TLRY maintains its current direction and does not revert back to pricing on the bullish side of $3.03 on 15-Dec-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 TILRAY BRANDS INC closes at or below $3.14 on 15-Dec-2023. Based on our risk-neutral analysis, there is a 51.67% 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.