52-Week Low Alert: Trading today’s movement in KONINKLIJKE PHILIPS $PHG

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

PHG was recently trading at $20.57 and has an implied volatility of 48.26% for this period. Based on an analysis of the options available for PHG expiring on 15-Jul-2022, there is a 34.23% likelihood that the underlying will close within the analyzed range of $18.25-$20.58 at expiration. In this scenario, the average linear return for the trade would be 55.93%.

52 week low: KONINKLIJKE PHILIPS recently reached a new 52-week low at $20.20. PHG had traded in the range $20.36-$50.78 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 PHG maintains its current direction and does not revert back to pricing on the bullish side of $20.57 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 KONINKLIJKE PHILIPS closes at or below $20.95 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 55.87% 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.

Leave a Reply