Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for WEST PHARMACEUTICAL (WST) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WST was recently trading at $303.36 and has an implied volatility of 39.37% for this period. Based on an analysis of the options available for WST expiring on 17-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $264.49-$303.54 at expiration. In this scenario, the average linear return for the trade would be 27.66%.
52 week low: WEST PHARMACEUTICAL recently reached a new 52-week low at $300.18. WST had traded in the range $306.53-$475.35 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 WST maintains its current direction and does not revert back to pricing on the bullish side of $303.36 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 WEST PHARMACEUTICAL closes at or below $303.80 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 50.25% 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.