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Quantchabot has detected a promising Bear Call Spread trade opportunity for AMETEK (AME) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AME was recently trading at $117.64 and has an implied volatility of 28.95% for this period. Based on an analysis of the options available for AME expiring on 17-Jun-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $108.02-$117.48 at expiration. In this scenario, the average linear return for the trade would be 38.48%.
52 week low: AMETEK recently reached a new 52-week low at $117.43. AME had traded in the range $118.28-$148.07 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 AME maintains its current direction and does not revert back to pricing on the bullish side of $117.64 on 17-Jun-2022. 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 AMETEK closes at or below $117.90 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 51.70% 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.