Quantchabot has detected a promising Bear Call Spread trade opportunity for VISA (V) for the 22-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
V was recently trading at $187.67 and has an implied volatility of 35.50% for this period. Based on an analysis of the options available for V expiring on 22-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $168.14-$187.89 at expiration. In this scenario, the average linear return for the trade would be 29.80%.
52 week low: VISA recently reached a new 52-week low at $186.03. V had traded in the range $186.67-$252.67 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 V maintains its current direction and does not revert back to pricing on the bullish side of $187.67 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 VISA closes at or below $188.20 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 50.59% 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.