Big Loser Alert: Trading today’s -7.1% move in PETROLEO BRASILEIRO SA $PBR

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

PBR was recently trading at $12.84 and has an implied volatility of 61.18% for this period. Based on an analysis of the options available for PBR expiring on 21-Oct-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $10.84-$12.87 at expiration. In this scenario, the average linear return for the trade would be 23.05%.

Big -7.09% Change: After closing the last trading session at $13.82, PETROLEO BRASILEIRO SA opened today at $13.25 and has reached a low of $12.78.

Trade approach: A movement as big as -7.09% is a significantly bearish indicator, so this trade is designed to be profitable if PBR maintains its current direction and does not revert back to pricing on the bullish side of $12.84 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 PETROLEO BRASILEIRO SA closes at or below $12.91 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.76% 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.