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Quantchabot has detected a promising Bear Call Spread trade opportunity for CBOE GLOBAL MARKETS INC (CBOE) for the 1-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CBOE was recently trading at $107.06 and has an implied volatility of 34.46% for this period. Based on an analysis of the options available for CBOE expiring on 1-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $93.94-$106.67 at expiration. In this scenario, the average linear return for the trade would be 46.83%.
52 week low: CBOE GLOBAL MARKETS INC recently reached a new 52-week low at $104.43. CBOE had traded in the range $105.72-$139.00 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 CBOE maintains its current direction and does not revert back to pricing on the bullish side of $107.06 on 1-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 CBOE GLOBAL MARKETS INC closes at or below $106.85 on 1-Jul-2022. Based on our risk-neutral analysis, there is a 50.53% 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.