Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for XPENG INC (XPEV) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. XPEV was recently trading at $32.99 and has an implied volatility of 78.84% for this period. Based on an analysis of the options available for XPEV expiring on 7-May-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $27.04-$32.99 at expiration. In this scenario, the average linear return for the trade would be 61.55%. Big -7.02% Change: After closing the last trading session at $35.48, XPENG INC opened today at $35.85 and has reached a low of $32.83. Trade approach: A movement as big as -7.02% is a significantly bearish indicator, so this trade is designed to be profitable if XPEV maintains its current direction and does not revert back to pricing on the bullish side of $32.99 on 7-May-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 XPENG INC closes at or below $33.01 on 7-May-2021. Based on our risk-neutral analysis, there is a 50.11% 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.