The automated Quantcha Trade Ideas Service has detected a promising Bear Call Spread trade opportunity for APACHE (APA) for the 21-Jul-2017 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APA was recently trading at $46.78 and has an implied volatility of 28.26% for this period. Based on an analysis of the options available for APA expiring on 21-Jul-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $42.20-$46.71 at expiration. In this scenario, the average linear return for the trade would be 63.60%.
52 week low: APACHE recently reached a new 52-week low at $45.95. APA had traded in the range $46.09-$69.00 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 APA maintains its current direction and does not revert back to pricing on the bullish side of $46.78 on 21-Jul-2017. 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 APACHE closes at or below $47.17 on 21-Jul-2017. Based on our risk-neutral analysis, there is a 53.89% likelihood of this return.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
This is an automated post generated based on a market analysis of delayed data at 6/8/2017 9:41:17 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.