52-Week Low Alert: Trading today’s movement in METLIFE $MET

Quantchabot has detected a promising Bear Call Spread trade opportunity for METLIFE (MET) for the 28-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MET was recently trading at $56.97 and has an implied volatility of 40.26% for this period. Based on an analysis of the options available for MET expiring on 28-Apr-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $49.76-$57.29 at expiration. In this scenario, the average linear return for the trade would be 48.39%.

52 week low: METLIFE recently reached a new 52-week low at $56.43. MET had traded in the range $57.41-$77.36 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 MET maintains its current direction and does not revert back to pricing on the bullish side of $56.97 on 28-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 METLIFE closes at or below $57.55 on 28-Apr-2023. Based on our risk-neutral analysis, there is a 51.29% 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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