52-Week Low Alert: Trading today’s movement in EATON PUBLIC $ETN

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

ETN was recently trading at $130.61 and has an implied volatility of 34.44% for this period. Based on an analysis of the options available for ETN expiring on 15-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $118.13-$130.74 at expiration. In this scenario, the average linear return for the trade would be 24.85%.

52 week low: EATON PUBLIC recently reached a new 52-week low at $130.25. ETN had traded in the range $130.44-$175.72 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 ETN maintains its current direction and does not revert back to pricing on the bullish side of $130.61 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 EATON PUBLIC closes at or below $130.80 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.19% 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.