Quantchabot has detected a promising Bear Call Spread trade opportunity for CRESCENT POINT ENERGY CORP (CPG) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CPG was recently trading at $7.79 and has an implied volatility of 76.54% for this period. Based on an analysis of the options available for CPG expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $6.41-$7.79 at expiration. In this scenario, the average linear return for the trade would be 26.46%.
Big -7.10% Change: After closing the last trading session at $8.38, CRESCENT POINT ENERGY CORP opened today at $7.79 and has reached a low of $7.65.
Trade approach: A movement as big as -7.10% is a significantly bearish indicator, so this trade is designed to be profitable if CPG maintains its current direction and does not revert back to pricing on the bullish side of $7.79 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 CRESCENT POINT ENERGY CORP closes at or below $8.05 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 56.70% 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.