Quantchabot has detected a promising Bear Call Spread trade opportunity for PNC FINANCIAL SERVICES (PNC) for the 6-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PNC was recently trading at $127.33 and has an implied volatility of 57.86% for this period. Based on an analysis of the options available for PNC expiring on 6-Apr-2023, there is a 34.22% likelihood that the underlying will close within the analyzed range of $109.90-$127.76 at expiration. In this scenario, the average linear return for the trade would be 33.48%.
Big -7.16% Change: After closing the last trading session at $137.16, PNC FINANCIAL SERVICES opened today at $129.33 and has reached a low of $124.21.
Trade approach: A movement as big as -7.16% is a significantly bearish indicator, so this trade is designed to be profitable if PNC maintains its current direction and does not revert back to pricing on the bullish side of $127.33 on 6-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 PNC FINANCIAL SERVICES closes at or below $128.30 on 6-Apr-2023. Based on our risk-neutral analysis, there is a 51.13% 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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