52-Week Low Alert: Trading today’s movement in GENERAL ELECTRIC $GE

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 $65.05 and has an implied volatility of 40.95% for this period. Based on an analysis of the options available for GE expiring on 22-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $57.74-$65.02 at expiration. In this scenario, the average linear return for the trade would be 57.63%.

52 week low: GENERAL ELECTRIC recently reached a new 52-week low at $64.17. GE had traded in the range $64.54-$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 $65.05 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 $65.23 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 51.07% 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.