Quantchabot has detected a promising Bear Call Spread trade opportunity for CANADA GOOSE HOLDINGS INC (GOOS) for the 10-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GOOS was recently trading at $11.79 and has an implied volatility of 72.89% for this period. Based on an analysis of the options available for GOOS expiring on 10-Nov-2023, there is a 34.23% likelihood that the underlying will close within the analyzed range of $9.86-$11.83 at expiration. In this scenario, the average linear return for the trade would be 36.88%.
Big -7.31% Change: After closing the last trading session at $12.72, CANADA GOOSE HOLDINGS INC opened today at $11.99 and has reached a low of $11.55.
Trade approach: A movement as big as -7.31% is a significantly bearish indicator, so this trade is designed to be profitable if GOOS maintains its current direction and does not revert back to pricing on the bullish side of $11.79 on 10-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 CANADA GOOSE HOLDINGS INC closes at or below $11.95 on 10-Nov-2023. Based on our risk-neutral analysis, there is a 52.19% 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.