Quantchabot has detected a promising Bear Call Spread trade opportunity for HORIZON THERAPIES PUBLIC LTD (HZNP) for the 16-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HZNP was recently trading at $67.67 and has an implied volatility of 46.99% for this period. Based on an analysis of the options available for HZNP expiring on 16-Sep-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $57.67-$67.85 at expiration. In this scenario, the average linear return for the trade would be 27.82%.
52 week low: HORIZON THERAPIES PUBLIC LTD recently reached a new 52-week low at $66.94. HZNP had traded in the range $78.40-$120.53 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 HZNP maintains its current direction and does not revert back to pricing on the bullish side of $67.67 on 16-Sep-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 HORIZON THERAPIES PUBLIC LTD closes at or below $68.00 on 16-Sep-2022. Based on our risk-neutral analysis, there is a 50.54% 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.