52-Week Low Alert: Trading today’s movement in MASTERCARD $MA

Quantchabot has detected a promising Bear Call Spread trade opportunity for MASTERCARD (MA) for the 28-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MA was recently trading at $300.04 and has an implied volatility of 35.10% for this period. Based on an analysis of the options available for MA expiring on 28-Oct-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $268.70-$300.34 at expiration. In this scenario, the average linear return for the trade would be 27.16%.

52 week low: MASTERCARD recently reached a new 52-week low at $299.06. MA had traded in the range $303.65-$399.92 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 MA maintains its current direction and does not revert back to pricing on the bullish side of $300.04 on 28-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 MASTERCARD closes at or below $300.40 on 28-Oct-2022. Based on our risk-neutral analysis, there is a 50.07% 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.