52-Week Low Alert: Trading today’s movement in ALPHABET INC CLASS A $GOOGL

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

GOOGL was recently trading at $100.99 and has an implied volatility of 35.93% for this period. Based on an analysis of the options available for GOOGL expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $91.20-$101.21 at expiration. In this scenario, the average linear return for the trade would be 25.19%.

52 week low: ALPHABET INC CLASS A recently reached a new 52-week low at $100.82. GOOGL had traded in the range $100.94-$151.55 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 GOOGL maintains its current direction and does not revert back to pricing on the bullish side of $100.99 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 ALPHABET INC CLASS A closes at or below $101.22 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.04% 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.