Big Loser Alert: Trading today’s -7.4% move in WORLD WRESTLING $WWE

Quantchabot has detected a promising Bear Call Spread trade opportunity for WORLD WRESTLING (WWE) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WWE was recently trading at $96.85 and has an implied volatility of 40.55% for this period. Based on an analysis of the options available for WWE expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $84.40-$97.42 at expiration. In this scenario, the average linear return for the trade would be 28.20%.

Big -7.39% Change: After closing the last trading session at $104.58, WORLD WRESTLING opened today at $103.00 and has reached a low of $96.11.

Trade approach: A movement as big as -7.39% is a significantly bearish indicator, so this trade is designed to be profitable if WWE maintains its current direction and does not revert back to pricing on the bullish side of $96.85 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 WORLD WRESTLING closes at or below $97.65 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.67% 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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