Quantchabot has detected a new Bear Call Spread trade opportunity for INTERNATIONAL GAME TECH (IGT) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IGT was recently trading at $17.32 and has an implied volatility of 31.51% for this period. Based on an analysis of the options available for IGT expiring on 21-Feb-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $15.31-$17.46 at expiration. In this scenario, the average linear return for the trade would be 67.07%.
52 week low: INTERNATIONAL GAME TECH recently reached a new 52-week low at $16.96. IGT had traded in the range $17.11-$28.23 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 IGT maintains its current direction and does not revert back to pricing on the bullish side of $17.32 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 INTERNATIONAL GAME TECH closes at or below $17.55 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 51.53% 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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