Quantchabot has detected a promising Bear Call Spread trade opportunity for ORACLE CORP (ORCL) for the 17-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ORCL was recently trading at $110.51 and has an implied volatility of 25.30% for this period. Based on an analysis of the options available for ORCL expiring on 17-Nov-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $99.85-$111.26 at expiration. In this scenario, the average linear return for the trade would be 13.78%.
Big -12.78% Change: After closing the last trading session at $126.71, ORACLE CORP opened today at $112.08 and has reached a low of $110.27.
Trade approach: A movement as big as -12.78% is a significantly bearish indicator, so this trade is designed to be profitable if ORCL maintains its current direction and does not revert back to pricing on the bullish side of $110.51 on 17-Nov-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 ORACLE CORP closes at or below $111.28 on 17-Nov-2023. Based on our risk-neutral analysis, there is a 50.07% 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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