Quantchabot has detected a promising Bear Call Spread trade opportunity for INTUITIVE SURGICAL (ISRG) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ISRG was recently trading at $239.63 and has an implied volatility of 29.82% for this period. Based on an analysis of the options available for ISRG expiring on 17-Mar-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $215.65-$241.28 at expiration. In this scenario, the average linear return for the trade would be 17.62%.
Big -7.11% Change: After closing the last trading session at $257.98, INTUITIVE SURGICAL opened today at $241.09 and has reached a low of $238.84.
Trade approach: A movement as big as -7.11% is a significantly bearish indicator, so this trade is designed to be profitable if ISRG maintains its current direction and does not revert back to pricing on the bullish side of $239.63 on 17-Mar-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 INTUITIVE SURGICAL closes at or below $241.35 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 50.12% 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.