Quantchabot has detected a promising Bear Call Spread trade opportunity for ALBEMARLE (ALB) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ALB was recently trading at $148.60 and has an implied volatility of 46.92% for this period. Based on an analysis of the options available for ALB expiring on 19-Jan-2024, there is a 34.16% likelihood that the underlying will close within the analyzed range of $119.04-$150.79 at expiration. In this scenario, the average linear return for the trade would be 10.43%.
52 week low: ALBEMARLE recently reached a new 52-week low at $147.62. ALB had traded in the range $152.00-$334.55 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 ALB maintains its current direction and does not revert back to pricing on the bullish side of $148.60 on 19-Jan-2024. 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 ALBEMARLE closes at or below $151.10 on 19-Jan-2024. Based on our risk-neutral analysis, there is a 50.34% 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.