Quantchabot has detected a promising Bear Call Spread trade opportunity for MEDTRONIC PLC (MDT) for the 18-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MDT was recently trading at $83.92 and has an implied volatility of 28.01% for this period. Based on an analysis of the options available for MDT expiring on 18-Nov-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $75.38-$84.26 at expiration. In this scenario, the average linear return for the trade would be 26.57%.
52 week low: MEDTRONIC PLC recently reached a new 52-week low at $83.21. MDT had traded in the range $85.66-$131.31 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 MDT maintains its current direction and does not revert back to pricing on the bullish side of $83.92 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 MEDTRONIC PLC closes at or below $84.30 on 18-Nov-2022. Based on our risk-neutral analysis, there is a 50.16% 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.