Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for ESTEE LAUDER COS (EL) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EL was recently trading at $230.06 and has an implied volatility of 41.49% for this period. Based on an analysis of the options available for EL expiring on 15-Jul-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $192.36-$229.68 at expiration. In this scenario, the average linear return for the trade would be 19.82%.
52 week low: ESTEE LAUDER COS recently reached a new 52-week low at $227.20. EL had traded in the range $227.49-$374.20 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 EL maintains its current direction and does not revert back to pricing on the bullish side of $230.06 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 ESTEE LAUDER COS closes at or below $229.70 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.02% 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.