Quantchabot has detected a promising Bear Call Spread trade opportunity for HALLIBURTON (HAL) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HAL was recently trading at $30.48 and has an implied volatility of 53.60% for this period. Based on an analysis of the options available for HAL expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $25.77-$30.62 at expiration. In this scenario, the average linear return for the trade would be 38.53%.
Big -8.81% Change: After closing the last trading session at $33.42, HALLIBURTON opened today at $31.82 and has reached a low of $30.13.
Trade approach: A movement as big as -8.81% is a significantly bearish indicator, so this trade is designed to be profitable if HAL maintains its current direction and does not revert back to pricing on the bullish side of $30.48 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 HALLIBURTON closes at or below $30.73 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 50.84% 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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