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Quantchabot has detected a promising Bear Call Spread trade opportunity for INTUIT (INTU) for the 20-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
INTU was recently trading at $413.96 and has an implied volatility of 48.22% for this period. Based on an analysis of the options available for INTU expiring on 20-May-2022, there is a 34.27% likelihood that the underlying will close within the analyzed range of $374.65-$414.05 at expiration. In this scenario, the average linear return for the trade would be 18.45%.
Big -7.58% Change: After closing the last trading session at $447.92, INTUIT opened today at $437.87 and has reached a low of $413.63.
Trade approach: A movement as big as -7.58% is a significantly bearish indicator, so this trade is designed to be profitable if INTU maintains its current direction and does not revert back to pricing on the bullish side of $413.96 on 20-May-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 INTUIT closes at or below $414.05 on 20-May-2022. Based on our risk-neutral analysis, there is a 50.01% 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.