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Quantchabot has detected a promising Bear Call Spread trade opportunity for FOX FACTORY HOLDING CORP. COMM (FOXF) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FOXF was recently trading at $41.61 and has an implied volatility of 199.31% for this period. Based on an analysis of the options available for FOXF expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $29.31-$41.63 at expiration. In this scenario, the average linear return for the trade would be 23.14%.
52 week low: FOX FACTORY HOLDING CORP. COMM recently reached a new 52-week low at $41.61. FOXF had traded in the range $43.21-$86.91 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 FOXF maintains its current direction and does not revert back to pricing on the bullish side of $41.61 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 FOX FACTORY HOLDING CORP. COMM closes at or below $42.90 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 53.40% 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.