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Quantchabot has detected a promising Bear Call Spread trade opportunity for VIACOMCBS INC CLASS B (VIAC) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VIAC was recently trading at $33.06 and has an implied volatility of 37.61% for this period. Based on an analysis of the options available for VIAC expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $28.25-$32.83 at expiration. In this scenario, the average linear return for the trade would be 55.34%.
52 week low: VIACOMCBS INC CLASS B recently reached a new 52-week low at $32.58. VIAC had traded in the range $32.94-$101.97 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 VIAC maintains its current direction and does not revert back to pricing on the bullish side of $33.06 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 VIACOMCBS INC CLASS B closes at or below $33.40 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 54.56% 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.