Big Loser Alert: Trading today’s -7.4% move in PIONEER NATURAL RESOURCES $PXD

Quantchabot has detected a promising Bear Call Spread trade opportunity for PIONEER NATURAL RESOURCES (PXD) for the 4-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PXD was recently trading at $209.80 and has an implied volatility of 50.09% for this period. Based on an analysis of the options available for PXD expiring on 4-Nov-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $177.35-$210.48 at expiration. In this scenario, the average linear return for the trade would be 26.08%.

Big -7.43% Change: After closing the last trading session at $226.65, PIONEER NATURAL RESOURCES opened today at $217.10 and has reached a low of $209.47.

Trade approach: A movement as big as -7.43% is a significantly bearish indicator, so this trade is designed to be profitable if PXD maintains its current direction and does not revert back to pricing on the bullish side of $209.80 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 PIONEER NATURAL RESOURCES closes at or below $211.00 on 4-Nov-2022. Based on our risk-neutral analysis, there is a 50.58% 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.