Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for ZOETIS INC (ZTS) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ZTS was recently trading at $163.58 and has an implied volatility of 31.09% for this period. Based on an analysis of the options available for ZTS expiring on 15-Jul-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $143.35-$163.73 at expiration. In this scenario, the average linear return for the trade would be 21.50%.
52 week low: ZOETIS INC recently reached a new 52-week low at $162.58. ZTS had traded in the range $167.46-$249.27 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 ZTS maintains its current direction and does not revert back to pricing on the bullish side of $163.58 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 ZOETIS INC closes at or below $163.95 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.40% 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.