Quantchabot has detected a promising Bear Call Spread trade opportunity for LPL FINANCIAL HOLDINGS (LPLA) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LPLA was recently trading at $206.81 and has an implied volatility of 63.76% for this period. Based on an analysis of the options available for LPLA expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $168.51-$207.92 at expiration. In this scenario, the average linear return for the trade would be 23.33%.
Big -10.57% Change: After closing the last trading session at $231.26, LPL FINANCIAL HOLDINGS opened today at $224.37 and has reached a low of $198.35.
Trade approach: A movement as big as -10.57% is a significantly bearish indicator, so this trade is designed to be profitable if LPLA maintains its current direction and does not revert back to pricing on the bullish side of $206.81 on 21-Apr-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 LPL FINANCIAL HOLDINGS closes at or below $208.10 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 50.17% 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.
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