52-Week Low Alert: Trading today’s movement in SPDR BLOOMBERG CAPITAL CONVERTIBLE $CWB

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Quantchabot has detected a promising Bear Call Spread trade opportunity for SPDR BLOOMBERG CAPITAL CONVERTIBLE (CWB) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CWB was recently trading at $78.99 and has an implied volatility of 22.89% for this period. Based on an analysis of the options available for CWB expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $73.28-$78.99 at expiration. In this scenario, the average linear return for the trade would be 55.97%.

52 week low: SPDR BLOOMBERG CAPITAL CONVERTIBLE recently reached a new 52-week low at $78.43. CWB had traded in the range $79.15-$92.97 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 CWB maintains its current direction and does not revert back to pricing on the bullish side of $78.99 on 18-Feb-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 SPDR BLOOMBERG CAPITAL CONVERTIBLE closes at or below $79.05 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.37% 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.