Quantchabot has detected a promising Bear Call Spread trade opportunity for SCHLUMBERGER (SLB) for the 14-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SLB was recently trading at $34.92 and has an implied volatility of 53.27% for this period. Based on an analysis of the options available for SLB expiring on 14-Oct-2022, there is a 34.23% likelihood that the underlying will close within the analyzed range of $30.72-$34.98 at expiration. In this scenario, the average linear return for the trade would be 28.65%.
Big -8.65% Change: After closing the last trading session at $38.23, SCHLUMBERGER opened today at $36.25 and has reached a low of $34.65.
Trade approach: A movement as big as -8.65% is a significantly bearish indicator, so this trade is designed to be profitable if SLB maintains its current direction and does not revert back to pricing on the bullish side of $34.92 on 14-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 SCHLUMBERGER closes at or below $34.99 on 14-Oct-2022. Based on our risk-neutral analysis, there is a 50.07% 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.