Quantchabot has detected a promising Bear Call Spread trade opportunity for ADOBE INC (ADBE) for the 18-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ADBE was recently trading at $294.03 and has an implied volatility of 40.18% for this period. Based on an analysis of the options available for ADBE expiring on 18-Nov-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $251.32-$295.27 at expiration. In this scenario, the average linear return for the trade would be 14.29%.
52 week low: ADOBE INC recently reached a new 52-week low at $289.18. ADBE had traded in the range $292.14-$699.54 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 ADBE maintains its current direction and does not revert back to pricing on the bullish side of $294.03 on 18-Nov-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 ADOBE INC closes at or below $295.26 on 18-Nov-2022. Based on our risk-neutral analysis, there is a 50.00% 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.