52-Week Low Alert: Trading today’s movement in STRYKER $SYK

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

SYK was recently trading at $206.00 and has an implied volatility of 35.59% for this period. Based on an analysis of the options available for SYK expiring on 15-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $185.03-$205.50 at expiration. In this scenario, the average linear return for the trade would be 22.00%.

52 week low: STRYKER recently reached a new 52-week low at $204.35. SYK had traded in the range $214.17-$281.16 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 SYK maintains its current direction and does not revert back to pricing on the bullish side of $206.00 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 STRYKER closes at or below $205.60 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.18% 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.