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Quantchabot has detected a promising Bear Call Spread trade opportunity for WALT DISNEY (DIS) for the 6-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DIS was recently trading at $112.44 and has an implied volatility of 46.39% for this period. Based on an analysis of the options available for DIS expiring on 6-May-2022, there is a 34.58% likelihood that the underlying will close within the analyzed range of $106.66-$112.45 at expiration. In this scenario, the average linear return for the trade would be 23.25%.
52 week low: WALT DISNEY recently reached a new 52-week low at $111.08. DIS had traded in the range $112.69-$189.22 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 DIS maintains its current direction and does not revert back to pricing on the bullish side of $112.44 on 6-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 WALT DISNEY closes at or below $112.45 on 6-May-2022. Based on our risk-neutral analysis, there is a 50.03% 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.