Big Loser Alert: Trading today’s -7.4% move in PRECISION DRILLING $PDS

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Call Spread trade opportunity for PRECISION DRILLING (PDS) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PDS was recently trading at $66.51 and has an implied volatility of 65.52% for this period. Based on an analysis of the options available for PDS expiring on 17-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $52.64-$66.54 at expiration. In this scenario, the average linear return for the trade would be 19.31%.

Big -7.35% Change: After closing the last trading session at $71.79, PRECISION DRILLING opened today at $71.00 and has reached a low of $66.49.

Trade approach: A movement as big as -7.35% is a significantly bearish indicator, so this trade is designed to be profitable if PDS maintains its current direction and does not revert back to pricing on the bullish side of $66.51 on 17-Jun-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 PRECISION DRILLING closes at or below $66.70 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 50.41% 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.