Quantchabot has detected a promising Bear Call Spread trade opportunity for NUTRIEN LTD (NTR) for the 5-May-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NTR was recently trading at $64.69 and has an implied volatility of 37.54% for this period. Based on an analysis of the options available for NTR expiring on 5-May-2023, there is a 35.41% likelihood that the underlying will close within the analyzed range of $63.07-$64.70 at expiration. In this scenario, the average linear return for the trade would be 52.97%.
52 week low: NUTRIEN LTD recently reached a new 52-week low at $64.45. NTR had traded in the range $67.52-$107.82 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 NTR maintains its current direction and does not revert back to pricing on the bullish side of $64.69 on 5-May-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 NUTRIEN LTD closes at or below $64.90 on 5-May-2023. Based on our risk-neutral analysis, there is a 54.98% 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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