Quantchabot has detected a promising Bear Call Spread trade opportunity for WALT DISNEY (DIS) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DIS was recently trading at $92.94 and has an implied volatility of 36.62% for this period. Based on an analysis of the options available for DIS expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $82.71-$93.05 at expiration. In this scenario, the average linear return for the trade would be 22.42%.
52 week low: WALT DISNEY recently reached a new 52-week low at $92.01. DIS had traded in the range $93.10-$187.58 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 DIS maintains its current direction and does not revert back to pricing on the bullish side of $92.94 on 29-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 WALT DISNEY closes at or below $93.07 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 50.08% 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.