Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for NIKOLA CORP (NKLA) for the 31-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. NKLA was recently trading at $36.93 and has an implied volatility of 119.66% for this period. Based on an analysis of the options available for NKLA expiring on 31-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $30.52-$36.93 at expiration. In this scenario, the average linear return for the trade would be 53.85%. Big -7.09% Change: After closing the last trading session at $39.75, NIKOLA CORP opened today at $39.65 and has reached a low of $36.63. Trade approach: A movement as big as -7.09% is a significantly bearish indicator, so this trade is designed to be profitable if NKLA maintains its current direction and does not revert back to pricing on the bullish side of $36.93 on 31-Jul-2020. 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 NIKOLA CORP closes at or below $37.10 on 31-Jul-2020. Based on our risk-neutral analysis, there is a 50.95% 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.