Quantchabot has detected a promising Bear Call Spread trade opportunity for INTEL (INTC) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
INTC was recently trading at $37.43 and has an implied volatility of 36.09% for this period. Based on an analysis of the options available for INTC expiring on 15-Jul-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $33.80-$37.47 at expiration. In this scenario, the average linear return for the trade would be 23.04%.
52 week low: INTEL recently reached a new 52-week low at $37.35. INTC had traded in the range $37.54-$58.41 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 INTC maintains its current direction and does not revert back to pricing on the bullish side of $37.43 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 INTEL closes at or below $37.47 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.03% 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.