Big Loser Alert: Trading today’s -8.2% move in APOLLO GLOBAL MANAGEMENT $APO

Quantchabot has detected a promising Bear Call Spread trade opportunity for APOLLO GLOBAL MANAGEMENT (APO) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

APO was recently trading at $50.00 and has an implied volatility of 50.05% for this period. Based on an analysis of the options available for APO expiring on 29-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $41.87-$50.07 at expiration. In this scenario, the average linear return for the trade would be 36.71%.

Big -8.17% Change: After closing the last trading session at $54.45, APOLLO GLOBAL MANAGEMENT opened today at $52.00 and has reached a low of $48.92.

Trade approach: A movement as big as -8.17% is a significantly bearish indicator, so this trade is designed to be profitable if APO maintains its current direction and does not revert back to pricing on the bullish side of $50.00 on 29-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 APOLLO GLOBAL MANAGEMENT closes at or below $50.30 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 51.02% 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.