52-Week Low Alert: Trading today’s movement in MOODY’S $MCO

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

MCO was recently trading at $303.44 and has an implied volatility of 29.64% for this period. Based on an analysis of the options available for MCO expiring on 17-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $272.72-$302.90 at expiration. In this scenario, the average linear return for the trade would be 30.65%.

52 week low: MOODY’S recently reached a new 52-week low at $299.05. MCO had traded in the range $299.69-$407.94 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 MCO maintains its current direction and does not revert back to pricing on the bullish side of $303.44 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 MOODY’S closes at or below $303.70 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 51.01% 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.