52-Week Low Alert: Trading today’s movement in PROLOGIS $PLD

Quantchabot has detected a promising Bear Call Spread trade opportunity for PROLOGIS (PLD) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PLD was recently trading at $108.24 and has an implied volatility of 44.55% for this period. Based on an analysis of the options available for PLD expiring on 15-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $94.14-$107.56 at expiration. In this scenario, the average linear return for the trade would be 53.29%.

52 week low: PROLOGIS recently reached a new 52-week low at $106.46. PLD had traded in the range $116.37-$174.54 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 PLD maintains its current direction and does not revert back to pricing on the bullish side of $108.24 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 PROLOGIS closes at or below $108.45 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 52.48% 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.