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Quantchabot has detected a promising Bear Call Spread trade opportunity for ACTIVISION BLIZZARD (ATVI) for the 18-Jan-2019 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ATVI was recently trading at $52.10 and has an implied volatility of 41.17% for this period. Based on an analysis of the options available for ATVI expiring on 18-Jan-2019, there is a 34.14% likelihood that the underlying will close within the analyzed range of $43.98-$52.32 at expiration. In this scenario, the average linear return for the trade would be 77.05%.

52 week low: ACTIVISION BLIZZARD recently reached a new 52-week low at $52.06. ATVI had traded in the range $53.50-$84.68 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 ATVI maintains its current direction and does not revert back to pricing on the bullish side of $52.10 on 18-Jan-2019. 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 ACTIVISION BLIZZARD closes at or below $52.38 on 18-Jan-2019. Based on our risk-neutral analysis, there is a 50.27% 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.