Quantchabot has detected a promising Bear Call Spread trade opportunity for ABBOTT LABORATORIES (ABT) for the 14-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ABT was recently trading at $100.42 and has an implied volatility of 27.69% for this period. Based on an analysis of the options available for ABT expiring on 14-Oct-2022, there is a 34.23% likelihood that the underlying will close within the analyzed range of $93.43-$100.12 at expiration. In this scenario, the average linear return for the trade would be 23.38%.
52 week low: ABBOTT LABORATORIES recently reached a new 52-week low at $99.85. ABT had traded in the range $101.21-$142.60 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 ABT maintains its current direction and does not revert back to pricing on the bullish side of $100.42 on 14-Oct-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 ABBOTT LABORATORIES closes at or below $100.24 on 14-Oct-2022. Based on our risk-neutral analysis, there is a 50.71% 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.