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Quantchabot has detected a promising Bear Call Spread trade opportunity for JOHNSON CONTROLS (JCI) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
JCI was recently trading at $54.73 and has an implied volatility of 30.88% for this period. Based on an analysis of the options available for JCI expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $47.78-$54.79 at expiration. In this scenario, the average linear return for the trade would be 33.08%.
52 week low: JOHNSON CONTROLS recently reached a new 52-week low at $54.71. JCI had traded in the range $59.55-$81.77 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 JCI maintains its current direction and does not revert back to pricing on the bullish side of $54.73 on 15-Jul-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 JOHNSON CONTROLS closes at or below $54.85 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.33% 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.