52-Week Low Alert: Trading today’s movement in SYNCHRONY FINANCIAL $SYF

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Quantchabot has detected a promising Bear Call Spread trade opportunity for SYNCHRONY FINANCIAL (SYF) for the 1-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SYF was recently trading at $33.87 and has an implied volatility of 47.96% for this period. Based on an analysis of the options available for SYF expiring on 1-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $28.40-$33.90 at expiration. In this scenario, the average linear return for the trade would be 26.28%.

52 week low: SYNCHRONY FINANCIAL recently reached a new 52-week low at $33.35. SYF had traded in the range $33.76-$52.49 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 SYF maintains its current direction and does not revert back to pricing on the bullish side of $33.87 on 1-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 SYNCHRONY FINANCIAL closes at or below $33.95 on 1-Jul-2022. Based on our risk-neutral analysis, there is a 50.35% 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.