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Quantchabot has detected a promising Bear Call Spread trade opportunity for ADVANCED MICRO DEVICES INC. C (AMD) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMD was recently trading at $88.27 and has an implied volatility of 62.17% for this period. Based on an analysis of the options available for AMD expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $67.60-$88.34 at expiration. In this scenario, the average linear return for the trade would be 16.43%.
Big -7.42% Change: After closing the last trading session at $95.34, ADVANCED MICRO DEVICES INC. C opened today at $92.86 and has reached a low of $87.40.
Trade approach: A movement as big as -7.42% is a significantly bearish indicator, so this trade is designed to be profitable if AMD maintains its current direction and does not revert back to pricing on the bullish side of $88.27 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 ADVANCED MICRO DEVICES INC. C closes at or below $88.37 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.05% 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.