Quantchabot has detected a promising Bear Put Spread trade opportunity for SASOL (SSL) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SSL was recently trading at $22.82 and has an implied volatility of 64.41% for this period. Based on an analysis of the options available for SSL expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $19.39-$22.84 at expiration. In this scenario, the average linear return for the trade would be 34.06%.
Big -7.63% Change: After closing the last trading session at $24.71, SASOL opened today at $23.19 and has reached a low of $22.81.
Trade approach: A movement as big as -7.63% is a significantly bearish indicator, so this trade is designed to be profitable if SSL maintains its current direction and does not revert back to pricing on the bullish side of $22.82 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 SASOL closes at or below $23.15 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 53.28% 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.