52-Week Low Alert: Trading today’s movement in MAGNA INTERNATIONAL $MGA

Quantchabot has detected a new Bear Call Spread trade opportunity for MAGNA INTERNATIONAL (MGA) for the 19-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MGA was recently trading at $43.50 and has an implied volatility of 26.31% for this period. Based on an analysis of the options available for MGA expiring on 19-Jul-2024, there is a 34.19% likelihood that the underlying will close within the analyzed range of $40.13-$43.77 at expiration. In this scenario, the average linear return for the trade would be 39.72%.

52 week low: MAGNA INTERNATIONAL recently reached a new 52-week low at $43.05. MGA had traded in the range $43.88-$65.27 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 MGA maintains its current direction and does not revert back to pricing on the bullish side of $43.50 on 19-Jul-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 MAGNA INTERNATIONAL closes at or below $43.80 on 19-Jul-2024. Based on our risk-neutral analysis, there is a 50.37% 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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