Quantchabot has detected a promising Bear Call Spread trade opportunity for CARDLYTICS INC. COMMON STOCK (CDLX) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CDLX was recently trading at $17.24 and has an implied volatility of 82.47% for this period. Based on an analysis of the options available for CDLX expiring on 20-Oct-2023, there is a 34.20% likelihood that the underlying will close within the analyzed range of $13.54-$17.33 at expiration. In this scenario, the average linear return for the trade would be 21.51%.
Big -9.97% Change: After closing the last trading session at $19.15, CARDLYTICS INC. COMMON STOCK opened today at $18.96 and has reached a low of $17.24.
Trade approach: A movement as big as -9.97% is a significantly bearish indicator, so this trade is designed to be profitable if CDLX maintains its current direction and does not revert back to pricing on the bullish side of $17.24 on 20-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 CARDLYTICS INC. COMMON STOCK closes at or below $17.40 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.68% 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.