Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for DAQO NEW ENERGY (DQ) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. DQ was recently trading at $107.48 and has an implied volatility of 121.14% for this period. Based on an analysis of the options available for DQ expiring on 19-Feb-2021, there is a 34.16% likelihood that the underlying will close within the analyzed range of $97.58-$107.48 at expiration. In this scenario, the average linear return for the trade would be 31.51%. Big -10.60% Change: After closing the last trading session at $120.22, DAQO NEW ENERGY opened today at $116.00 and has reached a low of $104.16. Trade approach: A movement as big as -10.60% is a significantly bearish indicator, so this trade is designed to be profitable if DQ maintains its current direction and does not revert back to pricing on the bullish side of $107.48 on 19-Feb-2021. 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 DAQO NEW ENERGY closes at or below $107.65 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 50.65% 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.