Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Put Spread trade opportunity for IQIYI INC. AMERICAN DEPOSITARY SHARES (IQ) for the 29-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. IQ was recently trading at $19.03 and has an implied volatility of 62.12% for this period. Based on an analysis of the options available for IQ expiring on 29-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $15.33-$19.03 at expiration. In this scenario, the average linear return for the trade would be 39.27%. Big -14.70% Change: After closing the last trading session at $22.31, IQIYI INC. AMERICAN DEPOSITARY SHARES opened today at $20.39 and has reached a low of $18.80. Trade approach: A movement as big as -14.70% is a significantly bearish indicator, so this trade is designed to be profitable if IQ maintains its current direction and does not revert back to pricing on the bullish side of $19.03 on 29-Jan-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 IQIYI INC. AMERICAN DEPOSITARY SHARES closes at or below $19.10 on 29-Jan-2021. Based on our risk-neutral analysis, there is a 50.64% 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.