Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Put Spread trade opportunity for CHEGG INC (CHGG) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CHGG was recently trading at $103.46 and has an implied volatility of 50.41% for this period. Based on an analysis of the options available for CHGG expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $84.59-$103.48 at expiration. In this scenario, the average linear return for the trade would be 61.25%. Big -7.62% Change: After closing the last trading session at $112.00, CHEGG INC opened today at $107.02 and has reached a low of $102.50. Trade approach: A movement as big as -7.62% is a significantly bearish indicator, so this trade is designed to be profitable if CHGG maintains its current direction and does not revert back to pricing on the bullish side of $103.46 on 16-Apr-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 CHEGG INC closes at or below $104.00 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 50.99% 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.