Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for KINGSOFT CLOUD HOLDINGS LIMITED AMERICAN DEPOSITAR (KC) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. KC was recently trading at $36.65 and has an implied volatility of 51.94% for this period. Based on an analysis of the options available for KC expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $31.11-$36.65 at expiration. In this scenario, the average linear return for the trade would be 47.68%. Big -8.03% Change: After closing the last trading session at $39.85, KINGSOFT CLOUD HOLDINGS LIMITED AMERICAN DEPOSITAR opened today at $37.06 and has reached a low of $34.48. Trade approach: A movement as big as -8.03% is a significantly bearish indicator, so this trade is designed to be profitable if KC maintains its current direction and does not revert back to pricing on the bullish side of $36.65 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 KINGSOFT CLOUD HOLDINGS LIMITED AMERICAN DEPOSITAR closes at or below $36.80 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 50.98% 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.