Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Put Spread trade opportunity for VIATRIS INC (VTRS) for the 26-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VTRS was recently trading at $15.10 and has an implied volatility of 42.16% for this period. Based on an analysis of the options available for VTRS expiring on 26-Feb-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $14.50-$15.10 at expiration. In this scenario, the average linear return for the trade would be 16.57%.
52 week low: VIATRIS INC recently reached a new 52-week low at $15.03. VTRS had traded in the range $15.30-$18.86 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 VTRS maintains its current direction and does not revert back to pricing on the bullish side of $15.10 on 26-Feb-2021. 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 VIATRIS INC closes at or below $15.15 on 26-Feb-2021. Based on our risk-neutral analysis, there is a 53.61% 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.