Quantchabot has detected a new Bear Call Spread trade opportunity for CARMAX (KMX) for the 20-Mar-2026 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
KMX was recently trading at $40.36 and has an implied volatility of 56.58% for this period. Based on an analysis of the options available for KMX expiring on 20-Mar-2026, there is a 34.21% likelihood that the underlying will close within the analyzed range of $33.87-$40.51 at expiration. In this scenario, the average linear return for the trade would be 31.07%.
Big -11.88% Change: After closing the last trading session at $45.80, CARMAX opened today at $44.77 and has reached a low of $40.06.
Trade approach: A movement as big as -11.88% is a significantly bearish indicator, so this trade is designed to be profitable if KMX maintains its current direction and does not revert back to pricing on the bullish side of $40.36 on 20-Mar-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 CARMAX closes at or below $40.65 on 20-Mar-2026. Based on our risk-neutral analysis, there is a 50.76% 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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