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Quantchabot has detected a promising Bear Call Spread trade opportunity for BURLINGTON STORES INC (BURL) for the 25-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BURL was recently trading at $232.53 and has an implied volatility of 36.16% for this period. Based on an analysis of the options available for BURL expiring on 25-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $205.59-$232.54 at expiration. In this scenario, the average linear return for the trade would be 30.06%.
52 week low: BURLINGTON STORES INC recently reached a new 52-week low at $231.57. BURL had traded in the range $233.66-$357.34 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 BURL maintains its current direction and does not revert back to pricing on the bullish side of $232.53 on 25-Feb-2022. 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 BURLINGTON STORES INC closes at or below $232.80 on 25-Feb-2022. Based on our risk-neutral analysis, there is a 50.36% 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.