Quantchabot has detected a promising Bear Call Spread trade opportunity for TRUIST FINANCIAL CORP (TFC) for the 14-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TFC was recently trading at $29.07 and has an implied volatility of 74.53% for this period. Based on an analysis of the options available for TFC expiring on 14-Apr-2023, there is a 34.20% likelihood that the underlying will close within the analyzed range of $23.58-$29.17 at expiration. In this scenario, the average linear return for the trade would be 33.08%.
Big -9.44% Change: After closing the last trading session at $32.10, TRUIST FINANCIAL CORP opened today at $31.88 and has reached a low of $28.70.
Trade approach: A movement as big as -9.44% is a significantly bearish indicator, so this trade is designed to be profitable if TFC maintains its current direction and does not revert back to pricing on the bullish side of $29.07 on 14-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 TRUIST FINANCIAL CORP closes at or below $29.20 on 14-Apr-2023. Based on our risk-neutral analysis, there is a 50.18% 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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