52-Week Low Alert: Trading today’s movement in BERKSHIRE HATHAWAY CL B $BRK.B

Quantchabot has detected a promising Bear Call Spread trade opportunity for BERKSHIRE HATHAWAY CL B (BRK.B) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BRK.B was recently trading at $265.06 and has an implied volatility of 26.14% for this period. Based on an analysis of the options available for BRK.B expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $244.23-$265.32 at expiration. In this scenario, the average linear return for the trade would be 44.00%.

52 week low: BERKSHIRE HATHAWAY CL B recently reached a new 52-week low at $265.06. BRK.B had traded in the range $265.68-$362.10 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 BRK.B maintains its current direction and does not revert back to pricing on the bullish side of $265.06 on 29-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 BERKSHIRE HATHAWAY CL B closes at or below $265.97 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 51.19% 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.