Big Loser Alert: Trading today’s -8.0% move in CANAAN INC. ADR OVERVIEW $CAN

Quantchabot has detected a new Bear Call Spread trade opportunity for CANAAN INC. ADR OVERVIEW (CAN) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CAN was recently trading at $1.91 and has an implied volatility of 159.73% for this period. Based on an analysis of the options available for CAN expiring on 21-Feb-2025, there is a 34.27% likelihood that the underlying will close within the analyzed range of $1.33-$1.91 at expiration. In this scenario, the average linear return for the trade would be 24.60%.

Big -7.97% Change: After closing the last trading session at $2.07, CANAAN INC. ADR OVERVIEW opened today at $1.86 and has reached a low of $1.85.

Trade approach: A movement as big as -7.97% is a significantly bearish indicator, so this trade is designed to be profitable if CAN maintains its current direction and does not revert back to pricing on the bullish side of $1.91 on 21-Feb-2025. 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 CANAAN INC. ADR OVERVIEW closes at or below $2.05 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 57.85% 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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