Quantchabot has detected a promising Bear Call Spread trade opportunity for RAYTHEON TECHNOLOGIES CORP (RTX) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RTX was recently trading at $78.54 and has an implied volatility of 20.68% for this period. Based on an analysis of the options available for RTX expiring on 20-Oct-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $73.81-$79.03 at expiration. In this scenario, the average linear return for the trade would be 49.80%.
52 week low: RAYTHEON TECHNOLOGIES CORP recently reached a new 52-week low at $78.01. RTX had traded in the range $80.27-$108.84 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 RTX maintains its current direction and does not revert back to pricing on the bullish side of $78.54 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 RAYTHEON TECHNOLOGIES CORP closes at or below $79.49 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.44% 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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