Quantchabot has detected a new Bear Call Spread trade opportunity for CLEVELAND-CLIFFS INC (CLF) for the 31-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CLF was recently trading at $9.46 and has an implied volatility of 59.95% for this period. Based on an analysis of the options available for CLF expiring on 31-Jan-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $7.75-$9.51 at expiration. In this scenario, the average linear return for the trade would be 61.21%.
52 week low: CLEVELAND-CLIFFS INC recently reached a new 52-week low at $9.20. CLF had traded in the range $9.51-$22.97 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 CLF maintains its current direction and does not revert back to pricing on the bullish side of $9.46 on 31-Jan-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 CLEVELAND-CLIFFS INC closes at or below $9.54 on 31-Jan-2025. Based on our risk-neutral analysis, there is a 50.60% 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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