Quantchabot has detected a promising Bear Call Spread trade opportunity for META PLATFORMS INC. CLASS A COMMON STOCK (META) for the 22-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
META was recently trading at $159.10 and has an implied volatility of 52.61% for this period. Based on an analysis of the options available for META expiring on 22-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $136.42-$159.26 at expiration. In this scenario, the average linear return for the trade would be 15.42%.
52 week low: META PLATFORMS INC. CLASS A COMMON STOCK recently reached a new 52-week low at $158.66. META had traded in the range $159.61-$384.33 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 META maintains its current direction and does not revert back to pricing on the bullish side of $159.10 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 META PLATFORMS INC. CLASS A COMMON STOCK closes at or below $159.27 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 50.02% 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.