Quantchabot has detected a promising Bear Call Spread trade opportunity for AMERIPRISE FINANCIAL (AMP) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMP was recently trading at $279.94 and has an implied volatility of 54.98% for this period. Based on an analysis of the options available for AMP expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $234.77-$281.44 at expiration. In this scenario, the average linear return for the trade would be 34.18%.
Big -7.24% Change: After closing the last trading session at $301.79, AMERIPRISE FINANCIAL opened today at $293.00 and has reached a low of $275.09.
Trade approach: A movement as big as -7.24% is a significantly bearish indicator, so this trade is designed to be profitable if AMP maintains its current direction and does not revert back to pricing on the bullish side of $279.94 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 AMERIPRISE FINANCIAL closes at or below $282.30 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 50.67% 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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