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Quantchabot has detected a promising Bear Call Spread trade opportunity for CISCO SYSTEMS (CSCO) for the 13-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CSCO was recently trading at $49.40 and has an implied volatility of 34.83% for this period. Based on an analysis of the options available for CSCO expiring on 13-May-2022, there is a 34.31% likelihood that the underlying will close within the analyzed range of $46.42-$49.40 at expiration. In this scenario, the average linear return for the trade would be 30.74%.

52 week low: CISCO SYSTEMS recently reached a new 52-week low at $49.15. CSCO had traded in the range $49.20-$64.28 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 CSCO maintains its current direction and does not revert back to pricing on the bullish side of $49.40 on 13-May-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 CISCO SYSTEMS closes at or below $49.41 on 13-May-2022. Based on our risk-neutral analysis, there is a 50.12% 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.