Quantchabot has detected a new Bear Call Spread trade opportunity for DIAMONDBACK ENERGY INC (FANG) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FANG was recently trading at $141.16 and has an implied volatility of 38.79% for this period. Based on an analysis of the options available for FANG expiring on 25-Apr-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $123.58-$141.97 at expiration. In this scenario, the average linear return for the trade would be 60.12%.
52 week low: DIAMONDBACK ENERGY INC recently reached a new 52-week low at $137.09. FANG had traded in the range $138.94-$214.50 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 FANG maintains its current direction and does not revert back to pricing on the bullish side of $141.16 on 25-Apr-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 DIAMONDBACK ENERGY INC closes at or below $142.10 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 50.27% 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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