Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for MGIC INVESTMENT (MTG) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. MTG was recently trading at $12.13 and has an implied volatility of 44.30% for this period. Based on an analysis of the options available for MTG expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $10.72-$12.13 at expiration. In this scenario, the average linear return for the trade would be 32.53%. Big -8.45% Change: After closing the last trading session at $13.25, MGIC INVESTMENT opened today at $13.06 and has reached a low of $12.12. Trade approach: A movement as big as -8.45% is a significantly bearish indicator, so this trade is designed to be profitable if MTG maintains its current direction and does not revert back to pricing on the bullish side of $12.13 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 MGIC INVESTMENT closes at or below $12.25 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 53.15% 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.