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Quantchabot has detected a promising Covered Put trade opportunity for CINEMARK HOLDINGS (CNK) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CNK was recently trading at $15.31 and has an implied volatility of 89.53% for this period. Based on an analysis of the options available for CNK expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $11.14-$15.32 at expiration. In this scenario, the average linear return for the trade would be 190.77%.

Big -8.73% Change: After closing the last trading session at $16.78, CINEMARK HOLDINGS opened today at $16.80 and has reached a low of $15.17.

Trade approach: A movement as big as -8.73% is a significantly bearish indicator, so this trade is designed to be profitable if CNK maintains its current direction and does not revert back to pricing on the bullish side of $15.31 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 CINEMARK HOLDINGS closes at or below $22.81 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 89.42% 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.