Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Put Spread trade opportunity for STONECO LTD. CLASS A COMMON SHARES (STNE) for the 26-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. STNE was recently trading at $33.85 and has an implied volatility of 60.90% for this period. Based on an analysis of the options available for STNE expiring on 26-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $28.40-$33.86 at expiration. In this scenario, the average linear return for the trade would be 53.02%. Big -7.12% Change: After closing the last trading session at $36.45, STONECO LTD. CLASS A COMMON SHARES opened today at $36.35 and has reached a low of $32.98. Trade approach: A movement as big as -7.12% is a significantly bearish indicator, so this trade is designed to be profitable if STNE maintains its current direction and does not revert back to pricing on the bullish side of $33.85 on 26-Nov-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 STONECO LTD. CLASS A COMMON SHARES closes at or below $33.95 on 26-Nov-2021. Based on our risk-neutral analysis, there is a 50.62% 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.