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Quantchabot has detected a promising Bear Call Spread trade opportunity for LHC GROUP (LHCG) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LHCG was recently trading at $171.14 and has an implied volatility of 30.44% for this period. Based on an analysis of the options available for LHCG expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $156.77-$171.15 at expiration. In this scenario, the average linear return for the trade would be 50.14%.
52 week low: LHC GROUP recently reached a new 52-week low at $167.91. LHCG had traded in the range $170.01-$236.81 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 LHCG maintains its current direction and does not revert back to pricing on the bullish side of $171.14 on 15-Oct-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 LHC GROUP closes at or below $171.70 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 51.45% 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.