52-Week Low Alert: Trading today’s movement in CARNIVAL $CUK

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Quantchabot has detected a promising Bear Call Spread trade opportunity for CARNIVAL (CUK) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CUK was recently trading at $13.11 and has an implied volatility of 77.02% for this period. Based on an analysis of the options available for CUK expiring on 17-Jun-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $10.31-$13.12 at expiration. In this scenario, the average linear return for the trade would be 43.03%.

52 week low: CARNIVAL recently reached a new 52-week low at $12.61. CUK had traded in the range $12.63-$27.31 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 CUK maintains its current direction and does not revert back to pricing on the bullish side of $13.11 on 17-Jun-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 CARNIVAL closes at or below $13.30 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 52.29% 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.