Quantchabot has detected a promising Bear Call Spread trade opportunity for ARCELORMITTAL (MT) for the 22-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MT was recently trading at $23.45 and has an implied volatility of 54.45% for this period. Based on an analysis of the options available for MT expiring on 22-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $20.04-$23.47 at expiration. In this scenario, the average linear return for the trade would be 32.13%.
Big -9.49% Change: After closing the last trading session at $25.91, ARCELORMITTAL opened today at $23.74 and has reached a low of $23.32.
Trade approach: A movement as big as -9.49% is a significantly bearish indicator, so this trade is designed to be profitable if MT maintains its current direction and does not revert back to pricing on the bullish side of $23.45 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 ARCELORMITTAL closes at or below $23.59 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 51.28% 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.