Quantchabot has detected a promising Bear Call Spread trade opportunity for KEYCORP (KEY) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
KEY was recently trading at $13.12 and has an implied volatility of 125.95% for this period. Based on an analysis of the options available for KEY expiring on 17-Mar-2023, there is a 34.71% likelihood that the underlying will close within the analyzed range of $11.56-$13.12 at expiration. In this scenario, the average linear return for the trade would be 46.73%.
52 week low: KEYCORP recently reached a new 52-week low at $12.87. KEY had traded in the range $14.96-$24.71 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 KEY maintains its current direction and does not revert back to pricing on the bullish side of $13.12 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 KEYCORP closes at or below $13.25 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 53.15% 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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