52-Week Low Alert: Trading today’s movement in NEWMARKET $NEU

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Quantchabot has detected a promising Bear Put Spread trade opportunity for NEWMARKET (NEU) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NEU was recently trading at $317.92 and has an implied volatility of 72.93% for this period. Based on an analysis of the options available for NEU expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $267.37-$318.11 at expiration. In this scenario, the average linear return for the trade would be 10.24%.

52 week low: NEWMARKET recently reached a new 52-week low at $317.38. NEU had traded in the range $342.82-$505.16 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 NEU maintains its current direction and does not revert back to pricing on the bullish side of $317.92 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 NEWMARKET closes at or below $336.50 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 62.68% 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.