Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for FLOWERS FOODS (FLO) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FLO was recently trading at $18.34 and has an implied volatility of 79.84% for this period. Based on an analysis of the options available for FLO expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $15.26-$18.35 at expiration. In this scenario, the average linear return for the trade would be 48.12%.
52 week low: FLOWERS FOODS recently reached a new 52-week low at $18.34. FLO had traded in the range $19.26-$25.08 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 FLO maintains its current direction and does not revert back to pricing on the bullish side of $18.34 on 17-Apr-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 FLOWERS FOODS closes at or below $18.40 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 50.58% 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.