Quantchabot has detected a promising Bear Call Spread trade opportunity for RAYMOND JAMES FINANCIAL (RJF) for the 16-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RJF was recently trading at $82.97 and has an implied volatility of 37.88% for this period. Based on an analysis of the options available for RJF expiring on 16-Jun-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $73.19-$83.44 at expiration. In this scenario, the average linear return for the trade would be 63.73%.
52 week low: RAYMOND JAMES FINANCIAL recently reached a new 52-week low at $82.00. RJF had traded in the range $84.86-$126.00 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 RJF maintains its current direction and does not revert back to pricing on the bullish side of $82.97 on 16-Jun-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 RAYMOND JAMES FINANCIAL closes at or below $83.55 on 16-Jun-2023. Based on our risk-neutral analysis, there is a 50.39% 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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