Quantchabot has detected a promising Bear Call Spread trade opportunity for HASBRO (HAS) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HAS was recently trading at $56.28 and has an implied volatility of 36.42% for this period. Based on an analysis of the options available for HAS expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $48.56-$56.68 at expiration. In this scenario, the average linear return for the trade would be 21.15%.
52 week low: HASBRO recently reached a new 52-week low at $56.28. HAS had traded in the range $57.14-$105.73 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 HAS maintains its current direction and does not revert back to pricing on the bullish side of $56.28 on 20-Jan-2023. 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 HASBRO closes at or below $56.70 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 50.12% 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.