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Quantchabot has detected a promising Bear Put Spread trade opportunity for CANADA GOOSE HOLDINGS INC (GOOS) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GOOS was recently trading at $35.69 and has an implied volatility of 48.67% for this period. Based on an analysis of the options available for GOOS expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $29.75-$35.70 at expiration. In this scenario, the average linear return for the trade would be 67.44%.

Big -7.65% Change: After closing the last trading session at $38.65, CANADA GOOSE HOLDINGS INC opened today at $35.75 and has reached a low of $35.13.

Trade approach: A movement as big as -7.65% is a significantly bearish indicator, so this trade is designed to be profitable if GOOS maintains its current direction and does not revert back to pricing on the bullish side of $35.69 on 15-Jan-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 CANADA GOOSE HOLDINGS INC closes at or below $35.83 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.78% 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.