Quantchabot has detected a promising Bear Call Spread trade opportunity for NETSCOUT SYSTEMS (NTCT) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NTCT was recently trading at $22.34 and has an implied volatility of 124.15% for this period. Based on an analysis of the options available for NTCT expiring on 20-Oct-2023, there is a 34.70% likelihood that the underlying will close within the analyzed range of $19.72-$22.35 at expiration. In this scenario, the average linear return for the trade would be 21.95%.
Big -19.03% Change: After closing the last trading session at $27.59, NETSCOUT SYSTEMS opened today at $21.15 and has reached a low of $21.15.
Trade approach: A movement as big as -19.03% is a significantly bearish indicator, so this trade is designed to be profitable if NTCT maintains its current direction and does not revert back to pricing on the bullish side of $22.34 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 NETSCOUT SYSTEMS closes at or below $22.95 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 58.52% 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.