52-Week Low Alert: Trading today’s movement in MORGAN STANLEY $MS

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

MS was recently trading at $81.14 and has an implied volatility of 37.82% for this period. Based on an analysis of the options available for MS expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $68.43-$81.20 at expiration. In this scenario, the average linear return for the trade would be 25.44%.

52 week low: MORGAN STANLEY recently reached a new 52-week low at $80.06. MS had traded in the range $80.75-$109.73 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 MS maintains its current direction and does not revert back to pricing on the bullish side of $81.14 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 MORGAN STANLEY closes at or below $81.21 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.02% 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.