52-Week Low Alert: Trading today’s movement in LANDSTAR SYSTEM $LSTR

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

LSTR was recently trading at $141.41 and has an implied volatility of 35.29% for this period. Based on an analysis of the options available for LSTR expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $129.12-$141.52 at expiration. In this scenario, the average linear return for the trade would be 41.47%.

52 week low: LANDSTAR SYSTEM recently reached a new 52-week low at $137.15. LSTR had traded in the range $137.76-$188.62 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 LSTR maintains its current direction and does not revert back to pricing on the bullish side of $141.41 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 LANDSTAR SYSTEM closes at or below $141.60 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.26% 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.