Quantchabot has detected a promising Bear Call Spread trade opportunity for ICAHN ENTERPRISES (IEP) for the 3-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IEP was recently trading at $17.44 and has an implied volatility of 82.59% for this period. Based on an analysis of the options available for IEP expiring on 3-Nov-2023, there is a 34.28% likelihood that the underlying will close within the analyzed range of $14.81-$17.48 at expiration. In this scenario, the average linear return for the trade would be 24.95%.
52 week low: ICAHN ENTERPRISES recently reached a new 52-week low at $17.11. IEP had traded in the range $17.46-$55.10 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 IEP maintains its current direction and does not revert back to pricing on the bullish side of $17.44 on 3-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 ICAHN ENTERPRISES closes at or below $17.55 on 3-Nov-2023. Based on our risk-neutral analysis, there is a 50.97% 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.