Quantchabot has detected a promising Bear Call Spread trade opportunity for COOPER (COO) for the 18-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
COO was recently trading at $284.49 and has an implied volatility of 32.28% for this period. Based on an analysis of the options available for COO expiring on 18-Nov-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $251.00-$285.68 at expiration. In this scenario, the average linear return for the trade would be 57.82%.
52 week low: COOPER recently reached a new 52-week low at $281.20. COO had traded in the range $283.03-$444.22 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 COO maintains its current direction and does not revert back to pricing on the bullish side of $284.49 on 18-Nov-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 COOPER closes at or below $287.10 on 18-Nov-2022. Based on our risk-neutral analysis, there is a 51.53% 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.