52-Week Low Alert: Trading today’s movement in WR BERKLEY $WRB

Quantchabot has detected a promising Bear Call Spread trade opportunity for WR BERKLEY (WRB) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WRB was recently trading at $60.30 and has an implied volatility of 27.16% for this period. Based on an analysis of the options available for WRB expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $55.53-$60.59 at expiration. In this scenario, the average linear return for the trade would be 19.65%.

52 week low: WR BERKLEY recently reached a new 52-week low at $59.85. WRB had traded in the range $59.98-$76.99 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 WRB maintains its current direction and does not revert back to pricing on the bullish side of $60.30 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 WR BERKLEY closes at or below $61.25 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 54.96% 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.






Leave a Reply