Quantchabot has detected a promising Bear Call Spread trade opportunity for PDC ENERGY (PDCE) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PDCE was recently trading at $62.93 and has an implied volatility of 70.49% for this period. Based on an analysis of the options available for PDCE expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $52.62-$62.97 at expiration. In this scenario, the average linear return for the trade would be 32.14%.
Big -7.35% Change: After closing the last trading session at $67.92, PDC ENERGY opened today at $63.79 and has reached a low of $61.95.
Trade approach: A movement as big as -7.35% is a significantly bearish indicator, so this trade is designed to be profitable if PDCE maintains its current direction and does not revert back to pricing on the bullish side of $62.93 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 PDC ENERGY closes at or below $63.35 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 51.33% 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.