Quantchabot has detected a promising Bear Call Spread trade opportunity for JPMORGAN CHASE (JPM) for the 8-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
JPM was recently trading at $114.48 and has an implied volatility of 36.91% for this period. Based on an analysis of the options available for JPM expiring on 8-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $103.18-$113.57 at expiration. In this scenario, the average linear return for the trade would be 43.30%.
52 week low: JPMORGAN CHASE recently reached a new 52-week low at $114.19. JPM had traded in the range $115.02-$172.96 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 JPM maintains its current direction and does not revert back to pricing on the bullish side of $114.48 on 8-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 JPMORGAN CHASE closes at or below $113.64 on 8-Jul-2022. Based on our risk-neutral analysis, there is a 50.27% 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.