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Quantchabot has detected a promising Bear Put Spread trade opportunity for LAS VEGAS SANDS (LVS) for the 22-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LVS was recently trading at $37.34 and has an implied volatility of 52.73% for this period. Based on an analysis of the options available for LVS expiring on 22-Oct-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $31.55-$37.35 at expiration. In this scenario, the average linear return for the trade would be 56.57%.
52 week low: LAS VEGAS SANDS recently reached a new 52-week low at $36.15. LVS had traded in the range $36.42-$66.77 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 LVS maintains its current direction and does not revert back to pricing on the bullish side of $37.34 on 22-Oct-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 LAS VEGAS SANDS closes at or below $37.49 on 22-Oct-2021. Based on our risk-neutral analysis, there is a 50.90% 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.