52-Week Low Alert: Trading today’s movement in SCOTTS MIRACLE GRO $SMG

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Quantchabot has detected a promising Bear Put Spread trade opportunity for SCOTTS MIRACLE GRO (SMG) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SMG was recently trading at $145.99 and has an implied volatility of 30.24% for this period. Based on an analysis of the options available for SMG expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $133.80-$146.00 at expiration. In this scenario, the average linear return for the trade would be 59.65%.

52 week low: SCOTTS MIRACLE GRO recently reached a new 52-week low at $143.04. SMG had traded in the range $143.08-$254.34 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 SMG maintains its current direction and does not revert back to pricing on the bullish side of $145.99 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 SCOTTS MIRACLE GRO closes at or below $146.90 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 52.82% 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.

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