Big Loser Alert: Trading today’s -7.8% move in KEYCORP $KEY

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 $11.32 and has an implied volatility of 94.92% for this period. Based on an analysis of the options available for KEY expiring on 14-Apr-2023, there is a 34.21% likelihood that the underlying will close within the analyzed range of $8.70-$11.36 at expiration. In this scenario, the average linear return for the trade would be 36.56%.

Big -7.82% Change: After closing the last trading session at $12.28, KEYCORP opened today at $11.91 and has reached a low of $11.22.

Trade approach: A movement as big as -7.82% 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 $11.32 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 $11.40 on 14-Apr-2023. Based on our risk-neutral analysis, there is a 50.55% 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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