Big Loser Alert: Trading today’s -19.6% move in CORE LABORATORIES $CLB

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Quantchabot has detected a promising Bear Call Spread trade opportunity for CORE LABORATORIES (CLB) for the 17-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CLB was recently trading at $38.17 and has an implied volatility of 53.10% for this period. Based on an analysis of the options available for CLB expiring on 17-Jan-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $34.00-$38.20 at expiration. In this scenario, the average linear return for the trade would be 28.77%.

Big -19.58% Change: After closing the last trading session at $47.46, CORE LABORATORIES opened today at $39.40 and has reached a low of $37.80.

Trade approach: A movement as big as -19.58% is a significantly bearish indicator, so this trade is designed to be profitable if CLB maintains its current direction and does not revert back to pricing on the bullish side of $38.17 on 17-Jan-2020. 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 CORE LABORATORIES closes at or below $38.25 on 17-Jan-2020. 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.