Quantchabot has detected a new Bear Call Spread trade opportunity for CENTENE (CNC) for the 25-Jul-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CNC was recently trading at $35.27 and has an implied volatility of 83.45% for this period. Based on an analysis of the options available for CNC expiring on 25-Jul-2025, there is a 34.22% likelihood that the underlying will close within the analyzed range of $28.59-$35.37 at expiration. In this scenario, the average linear return for the trade would be 24.42%.
Big -37.74% Change: After closing the last trading session at $56.65, CENTENE opened today at $37.34 and has reached a low of $35.15.
Trade approach: A movement as big as -37.74% is a significantly bearish indicator, so this trade is designed to be profitable if CNC maintains its current direction and does not revert back to pricing on the bullish side of $35.27 on 25-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 CENTENE closes at or below $40.20 on 25-Jul-2025. Based on our risk-neutral analysis, there is a 72.70% 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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