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

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

EBAY was recently trading at $46.29 and has an implied volatility of 40.02% for this period. Based on an analysis of the options available for EBAY expiring on 15-Jul-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $39.02-$46.12 at expiration. In this scenario, the average linear return for the trade would be 24.46%.

52 week low: EBAY recently reached a new 52-week low at $45.72. EBAY had traded in the range $46.47-$81.19 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 EBAY maintains its current direction and does not revert back to pricing on the bullish side of $46.29 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 EBAY closes at or below $46.12 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.01% 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.