Quantchabot has detected a promising Covered Put trade opportunity for COREBRIDGE FINANCIAL INC (CRBG) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CRBG was recently trading at $16.13 and has an implied volatility of 42.05% for this period. Based on an analysis of the options available for CRBG expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $14.18-$16.20 at expiration. In this scenario, the average linear return for the trade would be 11.03%.
52 week low: COREBRIDGE FINANCIAL INC recently reached a new 52-week low at $15.45. CRBG had traded in the range $16.71-$23.50 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 CRBG maintains its current direction and does not revert back to pricing on the bullish side of $16.13 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 COREBRIDGE FINANCIAL INC closes at or below $16.27 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 51.30% 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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