52-Week Low Alert: Trading today’s movement in MOMENTIVE GLOBAL INC $MNTV

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

MNTV was recently trading at $7.25 and has an implied volatility of 106.27% for this period. Based on an analysis of the options available for MNTV expiring on 21-Oct-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $4.46-$7.29 at expiration. In this scenario, the average linear return for the trade would be 19.05%.

52 week low: MOMENTIVE GLOBAL INC recently reached a new 52-week low at $6.58. MNTV had traded in the range $7.94-$25.00 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 MNTV maintains its current direction and does not revert back to pricing on the bullish side of $7.25 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 MOMENTIVE GLOBAL INC closes at or below $7.90 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 56.53% 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.