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Quantchabot has detected a promising Bear Call Spread trade opportunity for FMC (FMC) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FMC was recently trading at $122.15 and has an implied volatility of 32.75% for this period. Based on an analysis of the options available for FMC expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $105.06-$121.72 at expiration. In this scenario, the average linear return for the trade would be 36.56%.
Big -7.31% Change: After closing the last trading session at $131.78, FMC opened today at $129.15 and has reached a low of $121.26.
Trade approach: A movement as big as -7.31% is a significantly bearish indicator, so this trade is designed to be profitable if FMC maintains its current direction and does not revert back to pricing on the bullish side of $122.15 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 FMC closes at or below $122.60 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 51.95% 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.