The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for GENERAL ELECTRIC () for the 15-Sep-2017 expiration period. You can analyze the opportunity in depth over at the .
GE was recently trading at $25.83 and has an implied volatility of 15.49% for this period. Based on an analysis of the options available for GE expiring on 15-Sep-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $24.39-$25.95 at expiration. In this scenario, the average linear return for the trade would be 47.06%.
52 week low: GENERAL ELECTRIC recently reached a new 52-week low at $25.78. GE had traded in the range $25.85-$32.85 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 GE maintains its current direction and does not revert back to pricing on the bullish side of $25.83 on 15-Sep-2017. 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 GENERAL ELECTRIC closes at or below $26.32 on 15-Sep-2017. Based on our risk-neutral analysis, there is a 59.14% 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 .
This is an automated post generated based on a market analysis of delayed data at 7/24/2017 9:58:18 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.