Quantchabot has detected a promising Bear Call Spread trade opportunity for CREDIT SUISSE GROUP (CS) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CS was recently trading at $2.22 and has an implied volatility of 229.93% for this period. Based on an analysis of the options available for CS expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $1.08-$2.23 at expiration. In this scenario, the average linear return for the trade would be 26.51%.
52 week low: CREDIT SUISSE GROUP recently reached a new 52-week low at $2.11. CS had traded in the range $2.38-$8.35 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 CS maintains its current direction and does not revert back to pricing on the bullish side of $2.22 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 CREDIT SUISSE GROUP closes at or below $2.23 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 50.01% 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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