Quantchabot has detected a new Bear Call Spread trade opportunity for VERIZON COMMUNICATIONS (VZ) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VZ was recently trading at $42.91 and has an implied volatility of 24.02% for this period. Based on an analysis of the options available for VZ expiring on 17-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $39.27-$42.42 at expiration. In this scenario, the average linear return for the trade would be 45.33%.
Big -7.71% Change: After closing the last trading session at $46.49, VERIZON COMMUNICATIONS opened today at $43.24 and has reached a low of $42.78.
Trade approach: A movement as big as -7.71% is a significantly bearish indicator, so this trade is designed to be profitable if VZ maintains its current direction and does not revert back to pricing on the bullish side of $42.91 on 17-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 VERIZON COMMUNICATIONS closes at or below $42.56 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 51.71% 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.