52-Week Low Alert: Trading today’s movement in AMERICAN TOWER $AMT

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Quantchabot has detected a promising Bear Put Spread trade opportunity for AMERICAN TOWER (AMT) for the 24-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AMT was recently trading at $188.75 and has an implied volatility of 55.25% for this period. Based on an analysis of the options available for AMT expiring on 24-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $158.62-$187.82 at expiration. In this scenario, the average linear return for the trade would be 48.01%.

52 week low: AMERICAN TOWER recently reached a new 52-week low at $186.00. AMT had traded in the range $188.53-$258.62 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 AMT maintains its current direction and does not revert back to pricing on the bullish side of $188.75 on 24-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 AMERICAN TOWER closes at or below $188.90 on 24-Apr-2020. Based on our risk-neutral analysis, there is a 51.35% 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.