52-Week Low Alert: Trading today’s movement in ITAU UNIBANCO HOLDING $ITUB

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Quantchabot has detected a promising Bear Put Spread trade opportunity for ITAU UNIBANCO HOLDING (ITUB) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ITUB was recently trading at $3.84 and has an implied volatility of 43.66% for this period. Based on an analysis of the options available for ITUB expiring on 21-Jan-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $3.22-$3.83 at expiration. In this scenario, the average linear return for the trade would be 19.05%.

52 week low: ITAU UNIBANCO HOLDING recently reached a new 52-week low at $3.83. ITUB had traded in the range $3.90-$6.76 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 ITUB maintains its current direction and does not revert back to pricing on the bullish side of $3.84 on 21-Jan-2022. 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 ITAU UNIBANCO HOLDING closes at or below $4.16 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 67.85% 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.