Quantchabot has detected a promising Bear Call Spread trade opportunity for METLIFE (MET) for the 21-Jul-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MET was recently trading at $54.29 and has an implied volatility of 36.24% for this period. Based on an analysis of the options available for MET expiring on 21-Jul-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $45.92-$54.33 at expiration. In this scenario, the average linear return for the trade would be 31.97%.
Big -7.53% Change: After closing the last trading session at $58.71, METLIFE opened today at $58.06 and has reached a low of $54.16.
Trade approach: A movement as big as -7.53% is a significantly bearish indicator, so this trade is designed to be profitable if MET maintains its current direction and does not revert back to pricing on the bullish side of $54.29 on 21-Jul-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 METLIFE closes at or below $54.50 on 21-Jul-2023. Based on our risk-neutral analysis, there is a 50.74% 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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