Quantchabot has detected a promising Bear Call Spread trade opportunity for TECK RESOURCES LTD (TECK) for the 22-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TECK was recently trading at $34.62 and has an implied volatility of 56.18% for this period. Based on an analysis of the options available for TECK expiring on 22-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $29.44-$34.65 at expiration. In this scenario, the average linear return for the trade would be 34.42%.
Big -8.70% Change: After closing the last trading session at $37.92, TECK RESOURCES LTD opened today at $35.80 and has reached a low of $34.57.
Trade approach: A movement as big as -8.70% is a significantly bearish indicator, so this trade is designed to be profitable if TECK maintains its current direction and does not revert back to pricing on the bullish side of $34.62 on 22-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 TECK RESOURCES LTD closes at or below $34.70 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 50.34% 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.