Quantchabot has detected a promising Bear Call Spread trade opportunity for REGIONS FINANCIAL (RF) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RF was recently trading at $18.83 and has an implied volatility of 263.19% for this period. Based on an analysis of the options available for RF expiring on 17-Mar-2023, there is a 34.58% likelihood that the underlying will close within the analyzed range of $14.00-$18.84 at expiration. In this scenario, the average linear return for the trade would be 82.94%.
Big -7.15% Change: After closing the last trading session at $20.28, REGIONS FINANCIAL opened today at $14.21 and has reached a low of $13.94.
Trade approach: A movement as big as -7.15% is a significantly bearish indicator, so this trade is designed to be profitable if RF maintains its current direction and does not revert back to pricing on the bullish side of $18.83 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 REGIONS FINANCIAL closes at or below $19.05 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 51.50% 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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