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Quantchabot has detected a promising Short Risk Reversal trade opportunity for COUER MINING INC (CDE) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CDE was recently trading at $10.23 and has an implied volatility of 77.07% for this period. Based on an analysis of the options available for CDE expiring on 19-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $7.42-$10.23 at expiration. In this scenario, the average linear return for the trade would be 60.69%.

Big -7.75% Change: After closing the last trading session at $11.09, COUER MINING INC opened today at $10.57 and has reached a low of $10.04.

Trade approach: A movement as big as -7.75% is a significantly bearish indicator, so this trade is designed to be profitable if CDE maintains its current direction and does not revert back to pricing on the bullish side of $10.23 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 COUER MINING INC closes at or below $10.30 on 19-Feb-2021. 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.