Quantchabot has detected a promising Bear Call Spread trade opportunity for DEUTSCHE BANK AG (DB) for the 22-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DB was recently trading at $9.12 and has an implied volatility of 47.62% for this period. Based on an analysis of the options available for DB expiring on 22-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $7.96-$9.12 at expiration. In this scenario, the average linear return for the trade would be 54.72%.
52 week low: DEUTSCHE BANK AG recently reached a new 52-week low at $9.10. DB had traded in the range $9.16-$16.70 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 DB maintains its current direction and does not revert back to pricing on the bullish side of $9.12 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 DEUTSCHE BANK AG closes at or below $9.15 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 50.89% 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.