Quantchabot has detected a new Bear Call Spread trade opportunity for AVIS BUDGET GROUP (CAR) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CAR was recently trading at $62.03 and has an implied volatility of 67.38% for this period. Based on an analysis of the options available for CAR expiring on 25-Apr-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $49.16-$62.38 at expiration. In this scenario, the average linear return for the trade would be 45.05%.
Big -13.35% Change: After closing the last trading session at $71.59, AVIS BUDGET GROUP opened today at $71.41 and has reached a low of $61.41.
Trade approach: A movement as big as -13.35% is a significantly bearish indicator, so this trade is designed to be profitable if CAR maintains its current direction and does not revert back to pricing on the bullish side of $62.03 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 AVIS BUDGET GROUP closes at or below $62.65 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 50.74% 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.
Leave a Reply
You must be logged in to post a comment.