Quantchabot has detected a promising Bear Call Spread trade opportunity for VULCAN MATERIALS (VMC) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VMC was recently trading at $142.70 and has an implied volatility of 36.15% for this period. Based on an analysis of the options available for VMC expiring on 15-Jul-2022, there is a 34.23% likelihood that the underlying will close within the analyzed range of $130.48-$142.79 at expiration. In this scenario, the average linear return for the trade would be 12.80%.
52 week low: VULCAN MATERIALS recently reached a new 52-week low at $142.00. VMC had traded in the range $143.24-$213.65 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 VMC maintains its current direction and does not revert back to pricing on the bullish side of $142.70 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 VULCAN MATERIALS closes at or below $143.00 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.66% 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.