Quantchabot has detected a promising Bear Put Spread trade opportunity for AMERICA MOVIL (AMX) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMX was recently trading at $16.10 and has an implied volatility of 40.40% for this period. Based on an analysis of the options available for AMX expiring on 20-Oct-2023, there is a 34.92% likelihood that the underlying will close within the analyzed range of $15.55-$16.11 at expiration. In this scenario, the average linear return for the trade would be 16.21%.
52 week low: AMERICA MOVIL recently reached a new 52-week low at $15.99. AMX had traded in the range $16.19-$23.07 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if AMX maintains its current direction and does not revert back to pricing on the bullish side of $16.10 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 AMERICA MOVIL closes at or below $16.15 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.18% 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.