Quantchabot has detected a promising Bear Call Spread trade opportunity for VIASAT (VSAT) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VSAT was recently trading at $26.55 and has an implied volatility of 49.54% for this period. Based on an analysis of the options available for VSAT expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $22.44-$26.74 at expiration. In this scenario, the average linear return for the trade would be 24.66%.
Big -8.10% Change: After closing the last trading session at $28.89, VIASAT opened today at $28.33 and has reached a low of $26.28.
Trade approach: A movement as big as -8.10% is a significantly bearish indicator, so this trade is designed to be profitable if VSAT maintains its current direction and does not revert back to pricing on the bullish side of $26.55 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 VIASAT closes at or below $26.75 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.10% 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.