Quantchabot has detected a promising Bear Call Spread trade opportunity for AMC ENTERTAINMENT HOLDINGS INC (AMC) for the 4-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMC was recently trading at $7.99 and has an implied volatility of 117.21% for this period. Based on an analysis of the options available for AMC expiring on 4-Nov-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $5.34-$8.01 at expiration. In this scenario, the average linear return for the trade would be 24.44%.
Big -7.14% Change: After closing the last trading session at $8.60, AMC ENTERTAINMENT HOLDINGS INC opened today at $8.62 and has reached a low of $7.96.
Trade approach: A movement as big as -7.14% is a significantly bearish indicator, so this trade is designed to be profitable if AMC maintains its current direction and does not revert back to pricing on the bullish side of $7.99 on 4-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 AMC ENTERTAINMENT HOLDINGS INC closes at or below $8.04 on 4-Nov-2022. Based on our risk-neutral analysis, there is a 50.35% 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.