Quantchabot has detected a promising Covered Put trade opportunity for PETROLEO BRASILEIRO SA CLASS A (PBR.A) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PBR.A was recently trading at $11.46 and has an implied volatility of 51.43% for this period. Based on an analysis of the options available for PBR.A expiring on 21-Oct-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $9.94-$11.48 at expiration. In this scenario, the average linear return for the trade would be 15.11%.
Big -8.07% Change: After closing the last trading session at $12.46, PETROLEO BRASILEIRO SA CLASS A opened today at $11.94 and has reached a low of $11.44.
Trade approach: A movement as big as -8.07% is a significantly bearish indicator, so this trade is designed to be profitable if PBR.A maintains its current direction and does not revert back to pricing on the bullish side of $11.46 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 CLASS A closes at or below $11.60 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 52.89% 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.