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

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

ABB was recently trading at $26.45 and has an implied volatility of 34.95% for this period. Based on an analysis of the options available for ABB expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $24.21-$26.46 at expiration. In this scenario, the average linear return for the trade would be 70.47%.

52 week low: ABB recently reached a new 52-week low at $26.00. ABB had traded in the range $26.62-$39.11 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 ABB maintains its current direction and does not revert back to pricing on the bullish side of $26.45 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 ABB closes at or below $26.55 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 51.47% 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.