Quantchabot has detected a promising Bear Call Spread trade opportunity for EQT (EQT) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EQT was recently trading at $41.77 and has an implied volatility of 67.45% for this period. Based on an analysis of the options available for EQT expiring on 15-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $34.28-$41.81 at expiration. In this scenario, the average linear return for the trade would be 19.96%.
Big -7.32% Change: After closing the last trading session at $45.07, EQT opened today at $45.60 and has reached a low of $41.64.
Trade approach: A movement as big as -7.32% is a significantly bearish indicator, so this trade is designed to be profitable if EQT maintains its current direction and does not revert back to pricing on the bullish side of $41.77 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 EQT closes at or below $41.85 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.19% 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.