Big Loser Alert: Trading today’s -59.6% move in FIRST REPUBLIC BANK (SAN $FRC

Quantchabot has detected a promising Bear Call Spread trade opportunity for FIRST REPUBLIC BANK (SAN (FRC) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FRC was recently trading at $33.00 and has an implied volatility of 684.19% for this period. Based on an analysis of the options available for FRC expiring on 17-Mar-2023, there is a 34.59% likelihood that the underlying will close within the analyzed range of $15.24-$33.02 at expiration. In this scenario, the average linear return for the trade would be 14.02%.

Big -59.64% Change: After closing the last trading session at $81.76, FIRST REPUBLIC BANK (SAN opened today at $26.76 and has reached a low of $17.53.

Trade approach: A movement as big as -59.64% is a significantly bearish indicator, so this trade is designed to be profitable if FRC maintains its current direction and does not revert back to pricing on the bullish side of $33.00 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 FIRST REPUBLIC BANK (SAN closes at or below $34.50 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 52.30% 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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