Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Put Spread trade opportunity for ALIBABA GROUP HOLDING LIMITED (BABA) for the 14-Apr-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. BABA was recently trading at $104.37 and has an implied volatility of 61.24% for this period. Based on an analysis of the options available for BABA expiring on 14-Apr-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $83.44-$104.38 at expiration. In this scenario, the average linear return for the trade would be 77.51%. 52 week low: ALIBABA GROUP HOLDING LIMITED recently reached a new 52-week low at $104.00. BABA had traded in the range $108.70-$252.00 over the past year. Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if BABA maintains its current direction and does not revert back to pricing on the bullish side of $104.37 on 14-Apr-2022. 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 ALIBABA GROUP HOLDING LIMITED closes at or below $104.65 on 14-Apr-2022. Based on our risk-neutral analysis, there is a 50.47% 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.