Quantchabot has detected a new Bear Call Spread trade opportunity for ANHEUSER-BUSCH INBEV (BUD) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BUD was recently trading at $47.87 and has an implied volatility of 25.23% for this period. Based on an analysis of the options available for BUD expiring on 21-Feb-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $44.14-$48.13 at expiration. In this scenario, the average linear return for the trade would be 71.77%.
52 week low: ANHEUSER-BUSCH INBEV recently reached a new 52-week low at $47.77. BUD had traded in the range $48.55-$67.49 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 BUD maintains its current direction and does not revert back to pricing on the bullish side of $47.87 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 ANHEUSER-BUSCH INBEV closes at or below $48.20 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 50.73% 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.
Leave a Reply
You must be logged in to post a comment.