Quantchabot has detected a promising Bear Call Spread trade opportunity for FIFTH THIRD BANCORP (FITB) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FITB was recently trading at $23.15 and has an implied volatility of 305.50% for this period. Based on an analysis of the options available for FITB expiring on 17-Mar-2023, there is a 34.58% likelihood that the underlying will close within the analyzed range of $16.38-$23.16 at expiration. In this scenario, the average linear return for the trade would be 38.22%.
Big -23.77% Change: After closing the last trading session at $30.37, FIFTH THIRD BANCORP opened today at $26.71 and has reached a low of $22.11.
Trade approach: A movement as big as -23.77% is a significantly bearish indicator, so this trade is designed to be profitable if FITB maintains its current direction and does not revert back to pricing on the bullish side of $23.15 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 FIFTH THIRD BANCORP closes at or below $23.30 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 50.68% 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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