Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for CARVANA CO (CVNA) for the 25-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CVNA was recently trading at $145.40 and has an implied volatility of 86.90% for this period. Based on an analysis of the options available for CVNA expiring on 25-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $110.98-$145.41 at expiration. In this scenario, the average linear return for the trade would be 68.80%. Big -7.97% Change: After closing the last trading session at $157.99, CARVANA CO opened today at $153.67 and has reached a low of $143.25. Trade approach: A movement as big as -7.97% is a significantly bearish indicator, so this trade is designed to be profitable if CVNA maintains its current direction and does not revert back to pricing on the bullish side of $145.40 on 25-Feb-2022. 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 CARVANA CO closes at or below $150.52 on 25-Feb-2022. Based on our risk-neutral analysis, there is a 55.09% 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.