Quantchabot has detected a promising Bear Call Spread trade opportunity for CREDIT SUISSE GROUP (CS) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CS was recently trading at $3.56 and has an implied volatility of 64.79% for this period. Based on an analysis of the options available for CS expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $2.78-$3.58 at expiration. In this scenario, the average linear return for the trade would be 41.66%.
Big -7.05% Change: After closing the last trading session at $3.83, CREDIT SUISSE GROUP opened today at $3.63 and has reached a low of $3.55.
Trade approach: A movement as big as -7.05% is a significantly bearish indicator, so this trade is designed to be profitable if CS maintains its current direction and does not revert back to pricing on the bullish side of $3.56 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 CREDIT SUISSE GROUP closes at or below $3.65 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 52.88% 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.