Big Loser Alert: Trading today’s -15.3% move in WARNER BROS. DISCOVERY INC. SERIES A $WBD

Quantchabot has detected a promising Bear Call Spread trade opportunity for WARNER BROS. DISCOVERY INC. SERIES A (WBD) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WBD was recently trading at $14.80 and has an implied volatility of 53.70% for this period. Based on an analysis of the options available for WBD expiring on 21-Oct-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $11.61-$14.87 at expiration. In this scenario, the average linear return for the trade would be 20.58%.

Big -15.30% Change: After closing the last trading session at $17.48, WARNER BROS. DISCOVERY INC. SERIES A opened today at $14.59 and has reached a low of $14.46.

Trade approach: A movement as big as -15.30% is a significantly bearish indicator, so this trade is designed to be profitable if WBD maintains its current direction and does not revert back to pricing on the bullish side of $14.80 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 WARNER BROS. DISCOVERY INC. SERIES A closes at or below $14.88 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.06% 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.