Quantchabot has detected a promising Bear Call Spread trade opportunity for FIDELITY NATIONAL INFO (FIS) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FIS was recently trading at $81.70 and has an implied volatility of 35.31% for this period. Based on an analysis of the options available for FIS expiring on 21-Oct-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $74.17-$81.88 at expiration. In this scenario, the average linear return for the trade would be 47.77%.
52 week low: FIDELITY NATIONAL INFO recently reached a new 52-week low at $79.40. FIS had traded in the range $80.44-$126.20 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 FIS maintains its current direction and does not revert back to pricing on the bullish side of $81.70 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 FIDELITY NATIONAL INFO closes at or below $82.10 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 51.08% 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.