Quantchabot has detected a new Bear Call Spread trade opportunity for AVIS BUDGET GROUP (CAR) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CAR was recently trading at $61.29 and has an implied volatility of 77.13% for this period. Based on an analysis of the options available for CAR expiring on 2-May-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $46.41-$61.66 at expiration. In this scenario, the average linear return for the trade would be 47.96%.
52 week low: AVIS BUDGET GROUP recently reached a new 52-week low at $55.69. CAR had traded in the range $61.41-$132.25 over the past year.
Trade approach: Reaching a new 52-week low is a 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 $61.29 on 2-May-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 $61.80 on 2-May-2025. Based on our risk-neutral analysis, there is a 50.31% 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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