Quantchabot has detected a new Bear Call Spread trade opportunity for ABERCROMBIE & FITCH (ANF) for the 16-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ANF was recently trading at $75.84 and has an implied volatility of 60.84% for this period. Based on an analysis of the options available for ANF expiring on 16-May-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $59.17-$76.44 at expiration. In this scenario, the average linear return for the trade would be 36.55%.
52 week low: ABERCROMBIE & FITCH recently reached a new 52-week low at $74.31. ANF had traded in the range $75.62-$196.99 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 ANF maintains its current direction and does not revert back to pricing on the bullish side of $75.84 on 16-May-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 ABERCROMBIE & FITCH closes at or below $76.45 on 16-May-2025. Based on our risk-neutral analysis, there is a 50.02% 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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