Quantchabot has detected a new Bear Call Spread trade opportunity for MICROSTRATEGY (MSTR) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MSTR was recently trading at $253.38 and has an implied volatility of 105.26% for this period. Based on an analysis of the options available for MSTR expiring on 25-Apr-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $174.86-$254.84 at expiration. In this scenario, the average linear return for the trade would be 22.13%.
Big -11.77% Change: After closing the last trading session at $287.18, MICROSTRATEGY opened today at $268.00 and has reached a low of $251.05.
Trade approach: A movement as big as -11.77% is a significantly bearish indicator, so this trade is designed to be profitable if MSTR maintains its current direction and does not revert back to pricing on the bullish side of $253.38 on 25-Apr-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 MICROSTRATEGY closes at or below $254.90 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 50.03% 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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