52-Week Low Alert: Trading today’s movement in CHESAPEAKE ENERGY CORPORATION $CHK

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

CHK was recently trading at $71.65 and has an implied volatility of 44.74% for this period. Based on an analysis of the options available for CHK expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $62.44-$71.96 at expiration. In this scenario, the average linear return for the trade would be 25.27%.

52 week low: CHESAPEAKE ENERGY CORPORATION recently reached a new 52-week low at $69.68. CHK had traded in the range $72.28-$107.31 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 CHK maintains its current direction and does not revert back to pricing on the bullish side of $71.65 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 CHESAPEAKE ENERGY CORPORATION closes at or below $72.00 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 50.16% 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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