Big Loser Alert: Trading today’s -7.8% move in SUNCOR ENERGY $SU

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

SU was recently trading at $27.84 and has an implied volatility of 49.24% for this period. Based on an analysis of the options available for SU expiring on 21-Oct-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $24.30-$27.90 at expiration. In this scenario, the average linear return for the trade would be 26.85%.

Big -7.75% Change: After closing the last trading session at $30.18, SUNCOR ENERGY opened today at $29.05 and has reached a low of $27.68.

Trade approach: A movement as big as -7.75% is a significantly bearish indicator, so this trade is designed to be profitable if SU maintains its current direction and does not revert back to pricing on the bullish side of $27.84 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 SUNCOR ENERGY closes at or below $27.95 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.52% 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.