Quantchabot has detected a new Bear Call Spread trade opportunity for MICROSOFT (MSFT) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MSFT was recently trading at $380.92 and has an implied volatility of 29.54% for this period. Based on an analysis of the options available for MSFT expiring on 25-Apr-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $344.71-$383.11 at expiration. In this scenario, the average linear return for the trade would be 40.31%.
52 week low: MICROSOFT recently reached a new 52-week low at $378.91. MSFT had traded in the range $381.00-$468.35 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 MSFT maintains its current direction and does not revert back to pricing on the bullish side of $380.92 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 MICROSOFT closes at or below $383.38 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 50.28% 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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