Quantchabot has detected a promising Bear Call Spread trade opportunity for TOYOTA MOTOR (TM) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TM was recently trading at $139.24 and has an implied volatility of 25.73% for this period. Based on an analysis of the options available for TM expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $129.52-$139.54 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
52 week low: TOYOTA MOTOR recently reached a new 52-week low at $138.69. TM had traded in the range $140.00-$213.74 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 TM maintains its current direction and does not revert back to pricing on the bullish side of $139.24 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 TOYOTA MOTOR closes at or below $140.50 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 53.66% 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.