52-Week Low Alert: Trading today’s movement in DOMINION RESOURCES $D

Quantchabot has detected a promising Bear Call Spread trade opportunity for DOMINION RESOURCES (D) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

D was recently trading at $59.56 and has an implied volatility of 28.10% for this period. Based on an analysis of the options available for D expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $52.54-$59.30 at expiration. In this scenario, the average linear return for the trade would be 15.89%.

52 week low: DOMINION RESOURCES recently reached a new 52-week low at $59.51. D had traded in the range $59.67-$88.78 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if D maintains its current direction and does not revert back to pricing on the bullish side of $59.56 on 20-Jan-2023. 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 DOMINION RESOURCES closes at or below $59.40 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 50.54% 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.