Big Loser Alert: Trading today’s -8.7% move in VMWARE $VMW

Quantchabot has detected a promising Bear Call Spread trade opportunity for VMWARE (VMW) for the 17-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

VMW was recently trading at $151.86 and has an implied volatility of 85.15% for this period. Based on an analysis of the options available for VMW expiring on 17-Nov-2023, there is a 34.20% likelihood that the underlying will close within the analyzed range of $119.67-$152.57 at expiration. In this scenario, the average linear return for the trade would be 48.99%.

Big -8.66% Change: After closing the last trading session at $166.25, VMWARE opened today at $159.00 and has reached a low of $150.50.

Trade approach: A movement as big as -8.66% is a significantly bearish indicator, so this trade is designed to be profitable if VMW maintains its current direction and does not revert back to pricing on the bullish side of $151.86 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 VMWARE closes at or below $153.25 on 17-Nov-2023. Based on our risk-neutral analysis, there is a 50.74% 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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