Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for PENNYMAC FINANCIAL SERVICES IN (PFSI) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. PFSI was recently trading at $48.54 and has an implied volatility of 46.44% for this period. Based on an analysis of the options available for PFSI expiring on 18-Sep-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $41.80-$48.40 at expiration. In this scenario, the average linear return for the trade would be 41.15%. Big -8.41% Change: After closing the last trading session at $53.00, PENNYMAC FINANCIAL SERVICES IN opened today at $51.87 and has reached a low of $48.40. Trade approach: A movement as big as -8.41% is a significantly bearish indicator, so this trade is designed to be profitable if PFSI maintains its current direction and does not revert back to pricing on the bullish side of $48.54 on 18-Sep-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 PENNYMAC FINANCIAL SERVICES IN closes at or below $48.60 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 51.12% 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.