Quantchabot has detected a new Bear Call Spread trade opportunity for DUOLINGO INC. CLASS A COMMON STOCK (DUOL) for the 20-Feb-2026 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DUOL was recently trading at $119.76 and has an implied volatility of 86.35% for this period. Based on an analysis of the options available for DUOL expiring on 20-Feb-2026, there is a 34.30% likelihood that the underlying will close within the analyzed range of $100.30-$119.96 at expiration. In this scenario, the average linear return for the trade would be 37.14%.
52 week low: DUOLINGO INC. CLASS A COMMON STOCK recently reached a new 52-week low at $116.51. DUOL had traded in the range $119.61-$544.93 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 DUOL maintains its current direction and does not revert back to pricing on the bullish side of $119.76 on 20-Feb-2026. 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 DUOLINGO INC. CLASS A COMMON STOCK closes at or below $120.15 on 20-Feb-2026. Based on our risk-neutral analysis, there is a 50.37% 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.