Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Put Spread trade opportunity for CREDIT ACCEPTANCE (CACC) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CACC was recently trading at $391.99 and has an implied volatility of 41.70% for this period. Based on an analysis of the options available for CACC expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $339.55-$392.03 at expiration. In this scenario, the average linear return for the trade would be 51.33%. Big -14.78% Change: After closing the last trading session at $459.98, CREDIT ACCEPTANCE opened today at $430.00 and has reached a low of $390.45. Trade approach: A movement as big as -14.78% is a significantly bearish indicator, so this trade is designed to be profitable if CACC maintains its current direction and does not revert back to pricing on the bullish side of $391.99 on 16-Jul-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 CREDIT ACCEPTANCE closes at or below $394.60 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 51.81% 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.