Quantchabot has detected a new Bear Call Spread trade opportunity for PETCO HEALTH AND WELLNESS COMPANY INC. CLASS A (WOOF) for the 15-Aug-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WOOF was recently trading at $3.89 and has an implied volatility of 103.28% for this period. Based on an analysis of the options available for WOOF expiring on 15-Aug-2025, there is a 34.23% likelihood that the underlying will close within the analyzed range of $3.02-$3.90 at expiration. In this scenario, the average linear return for the trade would be 52.50%.
Big -10.80% Change: After closing the last trading session at $4.36, PETCO HEALTH AND WELLNESS COMPANY INC. CLASS A opened today at $4.34 and has reached a low of $3.86.
Trade approach: A movement as big as -10.80% is a significantly bearish indicator, so this trade is designed to be profitable if WOOF maintains its current direction and does not revert back to pricing on the bullish side of $3.89 on 15-Aug-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 PETCO HEALTH AND WELLNESS COMPANY INC. CLASS A closes at or below $3.90 on 15-Aug-2025. Based on our risk-neutral analysis, there is a 50.00% 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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