Quantchabot has detected a promising Bear Put Spread trade opportunity for PIONEER NATURAL RESOURCES (PXD) for the 28-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PXD was recently trading at $197.82 and has an implied volatility of 38.64% for this period. Based on an analysis of the options available for PXD expiring on 28-Apr-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $173.37-$199.07 at expiration. In this scenario, the average linear return for the trade would be 16.32%.
52 week low: PIONEER NATURAL RESOURCES recently reached a new 52-week low at $190.27. PXD had traded in the range $190.99-$288.46 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 PXD maintains its current direction and does not revert back to pricing on the bullish side of $197.82 on 28-Apr-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 PIONEER NATURAL RESOURCES closes at or below $199.50 on 28-Apr-2023. Based on our risk-neutral analysis, there is a 50.63% 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.
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