Quantchabot has detected a promising Covered Put trade opportunity for FRESENIUS MED CARE AG (FMS) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FMS was recently trading at $23.93 and has an implied volatility of 48.30% for this period. Based on an analysis of the options available for FMS expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $21.12-$23.94 at expiration. In this scenario, the average linear return for the trade would be 12.67%.
Big -7.27% Change: After closing the last trading session at $25.80, FRESENIUS MED CARE AG opened today at $26.18 and has reached a low of $23.35.
Trade approach: A movement as big as -7.27% is a significantly bearish indicator, so this trade is designed to be profitable if FMS maintains its current direction and does not revert back to pricing on the bullish side of $23.93 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 FRESENIUS MED CARE AG closes at or below $24.37 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 55.62% 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.