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Quantchabot has detected a promising Covered Put trade opportunity for SHAW COMMUNICATIONS (SJR) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SJR was recently trading at $26.68 and has an implied volatility of 57.26% for this period. Based on an analysis of the options available for SJR expiring on 17-Jun-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $22.24-$26.60 at expiration. In this scenario, the average linear return for the trade would be 15.67%.
52 week low: SHAW COMMUNICATIONS recently reached a new 52-week low at $25.87. SJR had traded in the range $25.88-$31.60 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 SJR maintains its current direction and does not revert back to pricing on the bullish side of $26.68 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 SHAW COMMUNICATIONS closes at or below $26.62 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 50.20% 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.