Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for HSBC HOLDINGS (HSBC) for the 23-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. HSBC was recently trading at $20.36 and has an implied volatility of 30.75% for this period. Based on an analysis of the options available for HSBC expiring on 23-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $18.45-$20.36 at expiration. In this scenario, the average linear return for the trade would be 50.68%. 52 week low: HSBC HOLDINGS recently reached a new 52-week low at $20.26. HSBC had traded in the range $20.54-$39.69 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 HSBC maintains its current direction and does not revert back to pricing on the bullish side of $20.36 on 23-Oct-2020. 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 HSBC HOLDINGS closes at or below $20.36 on 23-Oct-2020. Based on our risk-neutral analysis, there is a 50.04% 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.