52-Week Low Alert: Trading today’s movement in MELCO RESORTS & ENTERTAINMENT LTD $MLCO

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Quantchabot has detected a promising Bear Call Spread trade opportunity for MELCO RESORTS & ENTERTAINMENT LTD (MLCO) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MLCO was recently trading at $10.36 and has an implied volatility of 63.70% for this period. Based on an analysis of the options available for MLCO expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $8.62-$10.36 at expiration. In this scenario, the average linear return for the trade would be 59.69%.

52 week low: MELCO RESORTS & ENTERTAINMENT LTD recently reached a new 52-week low at $10.26. MLCO had traded in the range $10.80-$23.65 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 MLCO maintains its current direction and does not revert back to pricing on the bullish side of $10.36 on 15-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 MELCO RESORTS & ENTERTAINMENT LTD closes at or below $10.40 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 50.82% 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.

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