52-Week Low Alert: Trading today’s movement in TOTALENERGIES SE $TTE

Quantchabot has detected a promising Bear Call Spread trade opportunity for TOTALENERGIES SE (TTE) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TTE was recently trading at $45.11 and has an implied volatility of 38.93% for this period. Based on an analysis of the options available for TTE expiring on 21-Oct-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $40.53-$45.21 at expiration. In this scenario, the average linear return for the trade would be 18.36%.

52 week low: TOTALENERGIES SE recently reached a new 52-week low at $44.94. TTE had traded in the range $45.57-$61.15 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 TTE maintains its current direction and does not revert back to pricing on the bullish side of $45.11 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 TOTALENERGIES SE closes at or below $45.25 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.34% 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.