Quantchabot has detected a new Bear Call Spread trade opportunity for CALUMET SPECIALTY (CLMT) for the 28-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CLMT was recently trading at $16.84 and has an implied volatility of 102.74% for this period. Based on an analysis of the options available for CLMT expiring on 28-Feb-2025, there is a 34.24% likelihood that the underlying will close within the analyzed range of $12.92-$16.89 at expiration. In this scenario, the average linear return for the trade would be 35.54%.
Big -8.21% Change: After closing the last trading session at $18.34, CALUMET SPECIALTY opened today at $16.70 and has reached a low of $16.00.
Trade approach: A movement as big as -8.21% is a significantly bearish indicator, so this trade is designed to be profitable if CLMT maintains its current direction and does not revert back to pricing on the bullish side of $16.84 on 28-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 CALUMET SPECIALTY closes at or below $17.30 on 28-Feb-2025. Based on our risk-neutral analysis, there is a 53.62% 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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