Quantchabot has detected a promising Bear Call Spread trade opportunity for MATADOR RESOURCES (MTDR) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MTDR was recently trading at $49.76 and has an implied volatility of 64.37% for this period. Based on an analysis of the options available for MTDR expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $42.27-$49.79 at expiration. In this scenario, the average linear return for the trade would be 28.08%.
Big -7.24% Change: After closing the last trading session at $53.64, MATADOR RESOURCES opened today at $50.31 and has reached a low of $49.28.
Trade approach: A movement as big as -7.24% is a significantly bearish indicator, so this trade is designed to be profitable if MTDR maintains its current direction and does not revert back to pricing on the bullish side of $49.76 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 MATADOR RESOURCES closes at or below $49.80 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.05% 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.