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Quantchabot has detected a promising Covered Put trade opportunity for PARK NATIONAL (PRK) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PRK was recently trading at $66.49 and has an implied volatility of 51.47% for this period. Based on an analysis of the options available for PRK expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $54.34-$66.51 at expiration. In this scenario, the average linear return for the trade would be 15.18%.
52 week low: PARK NATIONAL recently reached a new 52-week low at $66.30. PRK had traded in the range $66.40-$105.52 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 PRK maintains its current direction and does not revert back to pricing on the bullish side of $66.49 on 17-Jul-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 PARK NATIONAL closes at or below $69.67 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 59.09% 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.