Quantchabot has detected a promising Bear Call Spread trade opportunity for KEYCORP (KEY) for the 14-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
KEY was recently trading at $10.59 and has an implied volatility of 90.27% for this period. Based on an analysis of the options available for KEY expiring on 14-Apr-2023, there is a 34.20% likelihood that the underlying will close within the analyzed range of $8.21-$10.63 at expiration. In this scenario, the average linear return for the trade would be 14.29%.
Big -9.87% Change: After closing the last trading session at $11.75, KEYCORP opened today at $11.61 and has reached a low of $10.57.
Trade approach: A movement as big as -9.87% is a significantly bearish indicator, so this trade is designed to be profitable if KEY maintains its current direction and does not revert back to pricing on the bullish side of $10.59 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 KEYCORP closes at or below $11.25 on 14-Apr-2023. Based on our risk-neutral analysis, there is a 58.77% 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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