Quantchabot has detected a promising Bear Call Spread trade opportunity for BOOKING HOLDINGS INC. COMMON STOCK (BKNG) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BKNG was recently trading at $1,807.18 and has an implied volatility of 47.03% for this period. Based on an analysis of the options available for BKNG expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $1,558.28-$1,808.97 at expiration. In this scenario, the average linear return for the trade would be 25.64%.
52 week low: BOOKING HOLDINGS INC. COMMON STOCK recently reached a new 52-week low at $1,795.01. BKNG had traded in the range $1,796.45-$2,715.66 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 BKNG maintains its current direction and does not revert back to pricing on the bullish side of $1,807.18 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 BOOKING HOLDINGS INC. COMMON STOCK closes at or below $1,809.00 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 50.01% 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.