Quantchabot has detected a new Bear Call Spread trade opportunity for CARVANA CO (CVNA) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CVNA was recently trading at $171.43 and has an implied volatility of 72.40% for this period. Based on an analysis of the options available for CVNA expiring on 25-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $136.07-$172.24 at expiration. In this scenario, the average linear return for the trade would be 34.03%.
Big -8.08% Change: After closing the last trading session at $186.50, CARVANA CO opened today at $183.54 and has reached a low of $171.21.
Trade approach: A movement as big as -8.08% is a significantly bearish indicator, so this trade is designed to be profitable if CVNA maintains its current direction and does not revert back to pricing on the bullish side of $171.43 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 CARVANA CO closes at or below $172.64 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 50.39% 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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