52-Week Low Alert: Trading today’s movement in DARLING INGREDIENTS INC $DAR

Quantchabot has detected a promising Bear Call Spread trade opportunity for DARLING INGREDIENTS INC (DAR) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DAR was recently trading at $53.41 and has an implied volatility of 41.81% for this period. Based on an analysis of the options available for DAR expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $46.98-$53.64 at expiration. In this scenario, the average linear return for the trade would be 40.43%.

52 week low: DARLING INGREDIENTS INC recently reached a new 52-week low at $53.03. DAR had traded in the range $55.71-$87.59 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 DAR maintains its current direction and does not revert back to pricing on the bullish side of $53.41 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 DARLING INGREDIENTS INC closes at or below $53.65 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 50.05% 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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