Quantchabot has detected a promising Bear Call Spread trade opportunity for ROBLOX CORP (RBLX) for the 27-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RBLX was recently trading at $26.98 and has an implied volatility of 44.87% for this period. Based on an analysis of the options available for RBLX expiring on 27-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $23.22-$27.17 at expiration. In this scenario, the average linear return for the trade would be 17.23%.
Big -7.64% Change: After closing the last trading session at $29.21, ROBLOX CORP opened today at $27.61 and has reached a low of $26.75.
Trade approach: A movement as big as -7.64% is a significantly bearish indicator, so this trade is designed to be profitable if RBLX maintains its current direction and does not revert back to pricing on the bullish side of $26.98 on 27-Oct-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 ROBLOX CORP closes at or below $27.18 on 27-Oct-2023. Based on our risk-neutral analysis, there is a 50.12% 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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