52-Week Low Alert: Trading today’s movement in ROYAL BANK OF CANADA. $RY

Quantchabot has detected a promising Bear Call Spread trade opportunity for ROYAL BANK OF CANADA. (RY) for the 19-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RY was recently trading at $94.63 and has an implied volatility of 24.60% for this period. Based on an analysis of the options available for RY expiring on 19-Aug-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $85.04-$93.77 at expiration. In this scenario, the average linear return for the trade would be 36.60%.

52 week low: ROYAL BANK OF CANADA. recently reached a new 52-week low at $94.23. RY had traded in the range $94.94-$119.41 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 RY maintains its current direction and does not revert back to pricing on the bullish side of $94.63 on 19-Aug-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 ROYAL BANK OF CANADA. closes at or below $93.80 on 19-Aug-2022. Based on our risk-neutral analysis, there is a 50.13% 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.