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Quantchabot has detected a promising Bear Call Spread trade opportunity for NEXTERA ENERGY (NEE) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NEE was recently trading at $69.88 and has an implied volatility of 30.82% for this period. Based on an analysis of the options available for NEE expiring on 17-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $62.62-$69.91 at expiration. In this scenario, the average linear return for the trade would be 35.02%.
52 week low: NEXTERA ENERGY recently reached a new 52-week low at $69.68. NEE had traded in the range $69.79-$93.73 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 NEE maintains its current direction and does not revert back to pricing on the bullish side of $69.88 on 17-Jun-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 NEXTERA ENERGY closes at or below $70.00 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 50.45% 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.