Big Loser Alert: Trading today’s -9.4% move in SERVICE CORPORATION $SCI

Quantchabot has detected a promising Bear Call Spread trade opportunity for SERVICE CORPORATION (SCI) for the 16-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SCI was recently trading at $66.78 and has an implied volatility of 24.77% for this period. Based on an analysis of the options available for SCI expiring on 16-Sep-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $61.41-$66.96 at expiration. In this scenario, the average linear return for the trade would be 58.61%.

Big -9.39% Change: After closing the last trading session at $73.70, SERVICE CORPORATION opened today at $72.25 and has reached a low of $66.35.

Trade approach: A movement as big as -9.39% is a significantly bearish indicator, so this trade is designed to be profitable if SCI maintains its current direction and does not revert back to pricing on the bullish side of $66.78 on 16-Sep-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 SERVICE CORPORATION closes at or below $67.10 on 16-Sep-2022. Based on our risk-neutral analysis, there is a 50.94% 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.