Quantchabot has detected a promising Bear Call Spread trade opportunity for MANCHESTER UNITED (MANU) for the 15-Sep-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MANU was recently trading at $19.78 and has an implied volatility of 84.19% for this period. Based on an analysis of the options available for MANU expiring on 15-Sep-2023, there is a 34.33% likelihood that the underlying will close within the analyzed range of $17.15-$19.81 at expiration. In this scenario, the average linear return for the trade would be 16.30%.
Big -16.40% Change: After closing the last trading session at $23.66, MANCHESTER UNITED opened today at $20.90 and has reached a low of $18.76.
Trade approach: A movement as big as -16.40% is a significantly bearish indicator, so this trade is designed to be profitable if MANU maintains its current direction and does not revert back to pricing on the bullish side of $19.78 on 15-Sep-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 MANCHESTER UNITED closes at or below $20.00 on 15-Sep-2023. Based on our risk-neutral analysis, there is a 52.63% 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.