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Quantchabot has detected a promising Bear Call Spread trade opportunity for SALESFORCE INC (CRM) for the 27-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CRM was recently trading at $166.49 and has an implied volatility of 58.65% for this period. Based on an analysis of the options available for CRM expiring on 27-May-2022, there is a 34.23% likelihood that the underlying will close within the analyzed range of $144.33-$166.54 at expiration. In this scenario, the average linear return for the trade would be 31.87%.
52 week low: SALESFORCE INC recently reached a new 52-week low at $165.58. CRM had traded in the range $167.55-$311.75 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 CRM maintains its current direction and does not revert back to pricing on the bullish side of $166.49 on 27-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 SALESFORCE INC closes at or below $166.69 on 27-May-2022. Based on our risk-neutral analysis, there is a 50.26% 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.