Big Loser Alert: Trading today’s -7.6% move in APA CORP $APA

Quantchabot has detected a promising Bear Call Spread trade opportunity for APA CORP (APA) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

APA was recently trading at $31.81 and has an implied volatility of 63.07% for this period. Based on an analysis of the options available for APA expiring on 21-Oct-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $23.85-$31.96 at expiration. In this scenario, the average linear return for the trade would be 26.43%.

Big -7.61% Change: After closing the last trading session at $34.43, APA CORP opened today at $33.12 and has reached a low of $31.72.

Trade approach: A movement as big as -7.61% is a significantly bearish indicator, so this trade is designed to be profitable if APA maintains its current direction and does not revert back to pricing on the bullish side of $31.81 on 21-Oct-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 APA CORP closes at or below $32.08 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.50% 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.