52-Week Low Alert: Trading today’s movement in WESTROCK CO $WRK

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

WRK was recently trading at $40.75 and has an implied volatility of 38.66% for this period. Based on an analysis of the options available for WRK expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $36.88-$40.78 at expiration. In this scenario, the average linear return for the trade would be 32.88%.

52 week low: WESTROCK CO recently reached a new 52-week low at $40.10. WRK had traded in the range $40.30-$54.78 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 WRK maintains its current direction and does not revert back to pricing on the bullish side of $40.75 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 WESTROCK CO closes at or below $41.30 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 55.01% 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.