Quantchabot has detected a promising Bear Call Spread trade opportunity for EOG RESOURCES (EOG) for the 28-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EOG was recently trading at $109.65 and has an implied volatility of 50.44% for this period. Based on an analysis of the options available for EOG expiring on 28-Oct-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $93.90-$109.95 at expiration. In this scenario, the average linear return for the trade would be 34.46%.
Big -7.35% Change: After closing the last trading session at $118.35, EOG RESOURCES opened today at $113.51 and has reached a low of $109.09.
Trade approach: A movement as big as -7.35% is a significantly bearish indicator, so this trade is designed to be profitable if EOG maintains its current direction and does not revert back to pricing on the bullish side of $109.65 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 EOG RESOURCES closes at or below $110.00 on 28-Oct-2022. Based on our risk-neutral analysis, there is a 50.12% 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.