Quantchabot has detected a promising Bear Call Spread trade opportunity for FORD MOTOR (F) for the 22-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
F was recently trading at $11.89 and has an implied volatility of 53.75% for this period. Based on an analysis of the options available for F expiring on 22-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $9.97-$11.90 at expiration. In this scenario, the average linear return for the trade would be 26.28%.
52 week low: FORD MOTOR recently reached a new 52-week low at $11.76. F had traded in the range $12.07-$25.87 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 F maintains its current direction and does not revert back to pricing on the bullish side of $11.89 on 22-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 FORD MOTOR closes at or below $11.92 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 50.30% 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.