Quantchabot has detected a new Bear Call Spread trade opportunity for PETROLEO BRASILEIRO SA (PBR) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PBR was recently trading at $12.62 and has an implied volatility of 26.48% for this period. Based on an analysis of the options available for PBR expiring on 21-Feb-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $11.45-$12.71 at expiration. In this scenario, the average linear return for the trade would be 70.04%.
52 week low: PETROLEO BRASILEIRO SA recently reached a new 52-week low at $12.55. PBR had traded in the range $12.77-$17.91 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 PBR maintains its current direction and does not revert back to pricing on the bullish side of $12.62 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 PETROLEO BRASILEIRO SA closes at or below $13.25 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 65.51% 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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