Quantchabot has detected a promising Bear Call Spread trade opportunity for MAXAR TECHNOLOGIES INC (MAXR) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MAXR was recently trading at $23.03 and has an implied volatility of 60.55% for this period. Based on an analysis of the options available for MAXR expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $18.17-$23.17 at expiration. In this scenario, the average linear return for the trade would be 34.51%.
Big -11.53% Change: After closing the last trading session at $26.03, MAXAR TECHNOLOGIES INC opened today at $25.38 and has reached a low of $22.91.
Trade approach: A movement as big as -11.53% is a significantly bearish indicator, so this trade is designed to be profitable if MAXR maintains its current direction and does not revert back to pricing on the bullish side of $23.03 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 MAXAR TECHNOLOGIES INC closes at or below $23.35 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 51.27% 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.