Quantchabot has detected a promising Bear Call Spread trade opportunity for GENERAL ELECTRIC (GE) for the 22-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GE was recently trading at $65.25 and has an implied volatility of 43.84% for this period. Based on an analysis of the options available for GE expiring on 22-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $56.85-$65.33 at expiration. In this scenario, the average linear return for the trade would be 54.40%.
52 week low: GENERAL ELECTRIC recently reached a new 52-week low at $64.89. GE had traded in the range $67.14-$116.17 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 GE maintains its current direction and does not revert back to pricing on the bullish side of $65.25 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 GENERAL ELECTRIC closes at or below $65.42 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 50.40% 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.