Big Loser Alert: Trading today’s -8.1% move in COMERICA $CMA

Quantchabot has detected a promising Bear Put Spread trade opportunity for COMERICA (CMA) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CMA was recently trading at $43.75 and has an implied volatility of 86.69% for this period. Based on an analysis of the options available for CMA expiring on 17-Mar-2023, there is a 37.72% likelihood that the underlying will close within the analyzed range of $42.16-$43.75 at expiration. In this scenario, the average linear return for the trade would be 20.56%.

Big -8.11% Change: After closing the last trading session at $47.61, COMERICA opened today at $46.31 and has reached a low of $42.83.

Trade approach: A movement as big as -8.11% is a significantly bearish indicator, so this trade is designed to be profitable if CMA maintains its current direction and does not revert back to pricing on the bullish side of $43.75 on 17-Mar-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 COMERICA closes at or below $43.80 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 51.36% 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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