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 $27.63 and has an implied volatility of 106.03% for this period. Based on an analysis of the options available for FITB expiring on 17-Mar-2023, there is a 34.71% likelihood that the underlying will close within the analyzed range of $24.83-$27.64 at expiration. In this scenario, the average linear return for the trade would be 44.05%.
52 week low: FIFTH THIRD BANCORP recently reached a new 52-week low at $27.31. FITB had traded in the range $29.50-$48.03 over the past year.
Trade approach: Reaching a new 52-week low is a 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 $27.63 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 $27.75 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 51.48% 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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