Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for HERBALIFE (HLF) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. HLF was recently trading at $48.63 and has an implied volatility of 42.49% for this period. Based on an analysis of the options available for HLF expiring on 16-Apr-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $41.11-$48.64 at expiration. In this scenario, the average linear return for the trade would be 46.92%. Big -12.36% Change: After closing the last trading session at $55.49, HERBALIFE opened today at $52.69 and has reached a low of $47.50. Trade approach: A movement as big as -12.36% is a significantly bearish indicator, so this trade is designed to be profitable if HLF maintains its current direction and does not revert back to pricing on the bullish side of $48.63 on 16-Apr-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 HERBALIFE closes at or below $48.85 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 51.03% 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.