52-Week Low Alert: Trading today’s movement in AMAZON.COM $AMZN

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

AMZN was recently trading at $2,344.68 and has an implied volatility of 41.25% for this period. Based on an analysis of the options available for AMZN expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $1,954.80-$2,346.94 at expiration. In this scenario, the average linear return for the trade would be 25.04%.

52 week low: AMAZON.COM recently reached a new 52-week low at $2,337.00. AMZN had traded in the range $2,367.50-$3,773.08 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 AMZN maintains its current direction and does not revert back to pricing on the bullish side of $2,344.68 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 AMAZON.COM closes at or below $2,347.35 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.04% 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.