Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for CLARIVATE PLC (CLVT) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CLVT was recently trading at $17.29 and has an implied volatility of 54.92% for this period. Based on an analysis of the options available for CLVT expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $14.57-$17.29 at expiration. In this scenario, the average linear return for the trade would be 28.41%.
52 week low: CLARIVATE PLC recently reached a new 52-week low at $17.18. CLVT had traded in the range $20.07-$34.79 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 CLVT maintains its current direction and does not revert back to pricing on the bullish side of $17.29 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 CLARIVATE PLC closes at or below $17.45 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 52.21% 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.