52-Week Low Alert: Trading today’s movement in S & P GLOBAL INC $SPGI

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Quantchabot has detected a promising Bear Call Spread trade opportunity for S & P GLOBAL INC (SPGI) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SPGI was recently trading at $334.93 and has an implied volatility of 32.16% for this period. Based on an analysis of the options available for SPGI expiring on 15-Jul-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $291.13-$334.38 at expiration. In this scenario, the average linear return for the trade would be 20.70%.

52 week low: S & P GLOBAL INC recently reached a new 52-week low at $334.81. SPGI had traded in the range $343.98-$484.21 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 SPGI maintains its current direction and does not revert back to pricing on the bullish side of $334.93 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 S & P GLOBAL INC closes at or below $335.45 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.92% 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.