52-Week Low Alert: Trading today’s movement in AT&T $T

Quantchabot has detected a promising Bear Call Spread trade opportunity for AT&T (T) for the 14-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

T was recently trading at $16.57 and has an implied volatility of 26.26% for this period. Based on an analysis of the options available for T expiring on 14-Oct-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $15.53-$16.60 at expiration. In this scenario, the average linear return for the trade would be 52.64%.

52 week low: AT&T recently reached a new 52-week low at $16.50. T had traded in the range $16.55-$21.53 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 T maintains its current direction and does not revert back to pricing on the bullish side of $16.57 on 14-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 AT&T closes at or below $16.64 on 14-Oct-2022. Based on our risk-neutral analysis, there is a 51.34% 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.