Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for IQIYI INC. AMERICAN DEPOSITARY SHARES (IQ) for the 23-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. IQ was recently trading at $22.81 and has an implied volatility of 69.85% for this period. Based on an analysis of the options available for IQ expiring on 23-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $18.65-$22.81 at expiration. In this scenario, the average linear return for the trade would be 19.52%. Big -21.10% Change: After closing the last trading session at $28.91, IQIYI INC. AMERICAN DEPOSITARY SHARES opened today at $28.90 and has reached a low of $22.40. Trade approach: A movement as big as -21.10% 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 $22.81 on 23-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 IQIYI INC. AMERICAN DEPOSITARY SHARES closes at or below $23.16 on 23-Apr-2021. Based on our risk-neutral analysis, there is a 53.00% 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.