Quantchabot has detected a promising Bear Call Spread trade opportunity for RIOT BLOCKCHAIN INC. COMMON STOCK (RIOT) for the 3-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RIOT was recently trading at $8.94 and has an implied volatility of 99.05% for this period. Based on an analysis of the options available for RIOT expiring on 3-Nov-2023, there is a 34.26% likelihood that the underlying will close within the analyzed range of $7.25-$8.96 at expiration. In this scenario, the average linear return for the trade would be 23.85%.
Big -7.55% Change: After closing the last trading session at $9.67, RIOT BLOCKCHAIN INC. COMMON STOCK opened today at $9.57 and has reached a low of $8.92.
Trade approach: A movement as big as -7.55% is a significantly bearish indicator, so this trade is designed to be profitable if RIOT maintains its current direction and does not revert back to pricing on the bullish side of $8.94 on 3-Nov-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 RIOT BLOCKCHAIN INC. COMMON STOCK closes at or below $8.98 on 3-Nov-2023. Based on our risk-neutral analysis, there is a 50.35% 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.