Quantchabot has detected a promising Bear Call Spread trade opportunity for DANAHER (DHR) for the 30-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DHR was recently trading at $228.12 and has an implied volatility of 23.37% for this period. Based on an analysis of the options available for DHR expiring on 30-Jun-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $211.17-$229.60 at expiration. In this scenario, the average linear return for the trade would be 42.17%.
52 week low: DANAHER recently reached a new 52-week low at $225.62. DHR had traded in the range $227.00-$303.82 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 DHR maintains its current direction and does not revert back to pricing on the bullish side of $228.12 on 30-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 DANAHER closes at or below $229.90 on 30-Jun-2023. Based on our risk-neutral analysis, there is a 50.65% 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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