Quantchabot has detected a new Bear Call Spread trade opportunity for CIVITAS RESOURCES INC. (CIVI) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CIVI was recently trading at $43.40 and has an implied volatility of 38.85% for this period. Based on an analysis of the options available for CIVI expiring on 21-Feb-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $37.19-$43.74 at expiration. In this scenario, the average linear return for the trade would be 90.65%.
52 week low: CIVITAS RESOURCES INC. recently reached a new 52-week low at $42.48. CIVI had traded in the range $43.47-$78.63 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 CIVI maintains its current direction and does not revert back to pricing on the bullish side of $43.40 on 21-Feb-2025. 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 CIVITAS RESOURCES INC. closes at or below $44.05 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 51.73% 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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