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Quantchabot has detected a promising Bear Call Spread trade opportunity for DELL TECHNOLOGIES INC (DELL) for the 20-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DELL was recently trading at $44.64 and has an implied volatility of 45.29% for this period. Based on an analysis of the options available for DELL expiring on 20-May-2022, there is a 34.41% likelihood that the underlying will close within the analyzed range of $41.80-$44.65 at expiration. In this scenario, the average linear return for the trade would be 12.61%.
52 week low: DELL TECHNOLOGIES INC recently reached a new 52-week low at $44.18. DELL had traded in the range $44.34-$61.54 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 DELL maintains its current direction and does not revert back to pricing on the bullish side of $44.64 on 20-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 DELL TECHNOLOGIES INC closes at or below $45.56 on 20-May-2022. Based on our risk-neutral analysis, there is a 62.21% 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.