Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Put Spread trade opportunity for ALIBABA GROUP HOLDING LIMITED (BABA) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. BABA was recently trading at $109.01 and has an implied volatility of 74.91% for this period. Based on an analysis of the options available for BABA expiring on 21-Jan-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $82.78-$109.03 at expiration. In this scenario, the average linear return for the trade would be 96.02%. Big -10.65% Change: After closing the last trading session at $122.00, ALIBABA GROUP HOLDING LIMITED opened today at $118.00 and has reached a low of $109.00. Trade approach: A movement as big as -10.65% is a significantly bearish indicator, so this trade is designed to be profitable if BABA maintains its current direction and does not revert back to pricing on the bullish side of $109.01 on 21-Jan-2022. 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 ALIBABA GROUP HOLDING LIMITED closes at or below $110.60 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 52.08% 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.