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Quantchabot has detected a promising Bear Call Spread trade opportunity for TAKE-TWO INTERACTIVE SFTW (TTWO) for the 4-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TTWO was recently trading at $146.66 and has an implied volatility of 41.19% for this period. Based on an analysis of the options available for TTWO expiring on 4-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $131.88-$146.66 at expiration. In this scenario, the average linear return for the trade would be 38.21%.
52 week low: TAKE-TWO INTERACTIVE SFTW recently reached a new 52-week low at $141.29. TTWO had traded in the range $144.58-$214.91 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 TTWO maintains its current direction and does not revert back to pricing on the bullish side of $146.66 on 4-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 TAKE-TWO INTERACTIVE SFTW closes at or below $146.75 on 4-Feb-2022. Based on our risk-neutral analysis, there is a 50.22% 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.