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Quantchabot has detected a promising Bear Call Spread trade opportunity for NIKE (NKE) for the 24-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NKE was recently trading at $112.19 and has an implied volatility of 44.40% for this period. Based on an analysis of the options available for NKE expiring on 24-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $95.04-$111.96 at expiration. In this scenario, the average linear return for the trade would be 44.35%.
52 week low: NIKE recently reached a new 52-week low at $110.66. NKE had traded in the range $116.75-$179.10 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 NKE maintains its current direction and does not revert back to pricing on the bullish side of $112.19 on 24-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 NIKE closes at or below $112.24 on 24-Jun-2022. Based on our risk-neutral analysis, there is a 50.61% 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.