Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for RITE AID (RAD) for the 11-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. RAD was recently trading at $11.12 and has an implied volatility of 64.99% for this period. Based on an analysis of the options available for RAD expiring on 11-Dec-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $9.41-$11.12 at expiration. In this scenario, the average linear return for the trade would be 45.43%. Big -14.10% Change: After closing the last trading session at $12.95, RITE AID opened today at $11.27 and has reached a low of $10.79. Trade approach: A movement as big as -14.10% is a significantly bearish indicator, so this trade is designed to be profitable if RAD maintains its current direction and does not revert back to pricing on the bullish side of $11.12 on 11-Dec-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 RITE AID closes at or below $11.16 on 11-Dec-2020. Based on our risk-neutral analysis, there is a 50.75% 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.