Quantchabot has detected a new Bear Call Spread trade opportunity for RIOT BLOCKCHAIN INC. COMMON STOCK (RIOT) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RIOT was recently trading at $6.28 and has an implied volatility of 88.33% for this period. Based on an analysis of the options available for RIOT expiring on 2-May-2025, there is a 34.26% likelihood that the underlying will close within the analyzed range of $5.21-$6.29 at expiration. In this scenario, the average linear return for the trade would be 71.39%.
52 week low: RIOT BLOCKCHAIN INC. COMMON STOCK recently reached a new 52-week low at $6.20. RIOT had traded in the range $6.22-$15.87 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 RIOT maintains its current direction and does not revert back to pricing on the bullish side of $6.28 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 RIOT BLOCKCHAIN INC. COMMON STOCK closes at or below $6.29 on 2-May-2025. Based on our risk-neutral analysis, there is a 50.08% 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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