Quantchabot has detected a new Bear Call Spread trade opportunity for COMMSCOPE HOLDING COMPANY INC (COMM) for the 18-Jul-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
COMM was recently trading at $5.46 and has an implied volatility of 64.40% for this period. Based on an analysis of the options available for COMM expiring on 18-Jul-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $4.36-$5.49 at expiration. In this scenario, the average linear return for the trade would be 44.76%.
Big -9.64% Change: After closing the last trading session at $6.04, COMMSCOPE HOLDING COMPANY INC opened today at $6.00 and has reached a low of $5.45.
Trade approach: A movement as big as -9.64% is a significantly bearish indicator, so this trade is designed to be profitable if COMM maintains its current direction and does not revert back to pricing on the bullish side of $5.46 on 18-Jul-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 COMMSCOPE HOLDING COMPANY INC closes at or below $5.50 on 18-Jul-2025. Based on our risk-neutral analysis, there is a 50.37% 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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