52-Week Low Alert: Trading today’s movement in TRUIST FINANCIAL CORP $TFC

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

TFC was recently trading at $46.41 and has an implied volatility of 37.92% for this period. Based on an analysis of the options available for TFC expiring on 15-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $41.48-$46.46 at expiration. In this scenario, the average linear return for the trade would be 28.63%.

52 week low: TRUIST FINANCIAL CORP recently reached a new 52-week low at $44.75. TFC had traded in the range $44.85-$68.95 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 TFC maintains its current direction and does not revert back to pricing on the bullish side of $46.41 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 TRUIST FINANCIAL CORP closes at or below $46.55 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.68% 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.