52-Week Low Alert: Trading today’s movement in KB FINANCIAL GROUP $KB

Quantchabot has detected a promising Short Risk Reversal trade opportunity for KB FINANCIAL GROUP (KB) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KB was recently trading at $40.41 and has an implied volatility of 30.20% for this period. Based on an analysis of the options available for KB expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $37.38-$40.44 at expiration. In this scenario, the average linear return for the trade would be 10.94%.

52 week low: KB FINANCIAL GROUP recently reached a new 52-week low at $39.57. KB had traded in the range $40.01-$55.31 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 KB maintains its current direction and does not revert back to pricing on the bullish side of $40.41 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 KB FINANCIAL GROUP closes at or below $40.95 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 56.33% 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.