Big Loser Alert: Trading today’s -8.4% move in CENOVUS ENERGY $CVE

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

CVE was recently trading at $15.57 and has an implied volatility of 51.91% for this period. Based on an analysis of the options available for CVE expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $13.24-$15.64 at expiration. In this scenario, the average linear return for the trade would be 35.33%.

Big -8.36% Change: After closing the last trading session at $16.99, CENOVUS ENERGY opened today at $16.24 and has reached a low of $15.24.

Trade approach: A movement as big as -8.36% is a significantly bearish indicator, so this trade is designed to be profitable if CVE maintains its current direction and does not revert back to pricing on the bullish side of $15.57 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 CENOVUS ENERGY closes at or below $15.75 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 51.63% 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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