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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 $2,334.56 and has an implied volatility of 42.87% 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 $1,932.56-$2,336.81 at expiration. In this scenario, the average linear return for the trade would be 11.67%.
Big -7.31% Change: After closing the last trading session at $2,518.57, AMAZON.COM opened today at $2,460.00 and has reached a low of $2,315.00.
Trade approach: A movement as big as -7.31% is a significantly 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 $2,334.56 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 $2,336.85 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.00% 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.