Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for MOMO INC. AMERICAN DEPOSITARY (MOMO) for the 23-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. MOMO was recently trading at $14.87 and has an implied volatility of 63.31% for this period. Based on an analysis of the options available for MOMO expiring on 23-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $11.93-$14.87 at expiration. In this scenario, the average linear return for the trade would be 38.80%. 52 week low: MOMO INC. AMERICAN DEPOSITARY recently reached a new 52-week low at $14.65. MOMO had traded in the range $15.40-$40.87 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 MOMO maintains its current direction and does not revert back to pricing on the bullish side of $14.87 on 23-Oct-2020. 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 MOMO INC. AMERICAN DEPOSITARY closes at or below $14.94 on 23-Oct-2020. Based on our risk-neutral analysis, there is a 50.81% 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.