52-Week Low Alert: Trading today’s movement in ARCELORMITTAL $MT

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 $23.61 and has an implied volatility of 52.52% 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 $20.35-$23.63 at expiration. In this scenario, the average linear return for the trade would be 24.93%.

52 week low: ARCELORMITTAL recently reached a new 52-week low at $23.47. MT had traded in the range $25.49-$37.87 over the past year.

Trade approach: Reaching a new 52-week low is a 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 $23.61 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 $23.65 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 50.18% 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.