Quantchabot has detected a promising Bear Call Spread trade opportunity for HEALTHPEAK PROPERTIES INC (PEAK) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PEAK was recently trading at $21.36 and has an implied volatility of 33.58% for this period. Based on an analysis of the options available for PEAK expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $19.27-$21.46 at expiration. In this scenario, the average linear return for the trade would be 24.05%.
52 week low: HEALTHPEAK PROPERTIES INC recently reached a new 52-week low at $21.07. PEAK had traded in the range $21.09-$35.72 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 PEAK maintains its current direction and does not revert back to pricing on the bullish side of $21.36 on 21-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 HEALTHPEAK PROPERTIES INC closes at or below $21.60 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 52.40% 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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