52-Week Low Alert: Trading today’s movement in BLACKROCK $BLK

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Quantchabot has detected a promising Bear Call Spread trade opportunity for BLACKROCK (BLK) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BLK was recently trading at $623.79 and has an implied volatility of 34.58% for this period. Based on an analysis of the options available for BLK expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $533.89-$624.26 at expiration. In this scenario, the average linear return for the trade would be 20.10%.

52 week low: BLACKROCK recently reached a new 52-week low at $616.63. BLK had traded in the range $639.32-$973.16 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 BLK maintains its current direction and does not revert back to pricing on the bullish side of $623.79 on 15-Jul-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 BLACKROCK closes at or below $624.46 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.08% 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.