Quantchabot has detected a promising Bear Call Spread trade opportunity for TARGET (TGT) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TGT was recently trading at $144.29 and has an implied volatility of 40.77% for this period. Based on an analysis of the options available for TGT expiring on 29-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $124.90-$144.49 at expiration. In this scenario, the average linear return for the trade would be 27.33%.
52 week low: TARGET recently reached a new 52-week low at $143.87. TGT had traded in the range $145.51-$268.98 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 TGT maintains its current direction and does not revert back to pricing on the bullish side of $144.29 on 29-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 TARGET closes at or below $144.79 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 50.56% 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.