Quantchabot has detected a promising Bear Call Spread trade opportunity for AMC ENTERTAINMENT HOLDINGS INC (AMC) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMC was recently trading at $11.39 and has an implied volatility of 131.66% for this period. Based on an analysis of the options available for AMC expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $6.93-$11.49 at expiration. In this scenario, the average linear return for the trade would be 21.88%.
Big -8.37% Change: After closing the last trading session at $12.43, AMC ENTERTAINMENT HOLDINGS INC opened today at $11.99 and has reached a low of $11.26.
Trade approach: A movement as big as -8.37% is a significantly bearish indicator, so this trade is designed to be profitable if AMC maintains its current direction and does not revert back to pricing on the bullish side of $11.39 on 20-Oct-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 AMC ENTERTAINMENT HOLDINGS INC closes at or below $11.51 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.16% 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.