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Quantchabot has detected a promising Bear Call Spread trade opportunity for ROYAL CARIBBEAN GROUP (RCL) for the 1-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RCL was recently trading at $60.52 and has an implied volatility of 60.13% for this period. Based on an analysis of the options available for RCL expiring on 1-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $48.52-$60.57 at expiration. In this scenario, the average linear return for the trade would be 32.85%.
52 week low: ROYAL CARIBBEAN GROUP recently reached a new 52-week low at $58.68. RCL had traded in the range $59.82-$98.27 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 RCL maintains its current direction and does not revert back to pricing on the bullish side of $60.52 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 ROYAL CARIBBEAN GROUP closes at or below $61.10 on 1-Jul-2022. Based on our risk-neutral analysis, there is a 51.57% 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.