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Quantchabot has detected a promising Bear Call Spread trade opportunity for PROCTER & GAMBLE (PG) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PG was recently trading at $99.21 and has an implied volatility of 59.87% for this period. Based on an analysis of the options available for PG expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $85.34-$99.27 at expiration. In this scenario, the average linear return for the trade would be 45.57%.
52 week low: PROCTER & GAMBLE recently reached a new 52-week low at $99.06. PG had traded in the range $101.00-$128.09 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 PG maintains its current direction and does not revert back to pricing on the bullish side of $99.21 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 PROCTER & GAMBLE closes at or below $100.20 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 52.45% 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.