Big Loser Alert: Trading today’s -10.0% move in ING GROEP $ING

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

ING was recently trading at $11.42 and has an implied volatility of 55.75% for this period. Based on an analysis of the options available for ING expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $9.59-$11.47 at expiration. In this scenario, the average linear return for the trade would be 48.69%.

Big -10.01% Change: After closing the last trading session at $12.69, ING GROEP opened today at $11.32 and has reached a low of $11.26.

Trade approach: A movement as big as -10.01% is a significantly bearish indicator, so this trade is designed to be profitable if ING maintains its current direction and does not revert back to pricing on the bullish side of $11.42 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 ING GROEP closes at or below $11.70 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 54.35% 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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