Quantchabot has detected a promising Bear Call Spread trade opportunity for SYSCO (SYY) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SYY was recently trading at $69.12 and has an implied volatility of 17.46% for this period. Based on an analysis of the options available for SYY expiring on 20-Oct-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $64.97-$69.11 at expiration. In this scenario, the average linear return for the trade would be 40.10%.
52 week low: SYSCO recently reached a new 52-week low at $68.98. SYY had traded in the range $69.22-$87.41 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 SYY maintains its current direction and does not revert back to pricing on the bullish side of $69.12 on 20-Oct-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 SYSCO closes at or below $69.45 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.21% 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.