Quantchabot has detected a promising Bull Call Spread trade opportunity for PEPSICO (PEP) for the 23-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PEP was recently trading at $193.53 and has an implied volatility of 14.12% for this period. Based on an analysis of the options available for PEP expiring on 23-Jun-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $193.68-$203.71 at expiration. In this scenario, the average linear return for the trade would be 10.84%.
52 week high: PEPSICO recently reached a new 52-week high at $194.00. PEP had traded in the range $154.86-$193.95 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if PEP maintains its current direction and does not revert back to pricing on the bearish side of $193.53 on 23-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 bullish strategy, the trade would be profitable if PEPSICO closes at or above $193.60 on 23-Jun-2023. Based on our risk-neutral analysis, there is a 50.31% 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.
Leave a Reply
You must be logged in to post a comment.