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 $77.37 and has an implied volatility of 19.49% 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 $73.01-$77.85 at expiration. In this scenario, the average linear return for the trade would be 31.14%.
Big -7.32% Change: After closing the last trading session at $83.48, RAYTHEON TECHNOLOGIES CORP opened today at $80.20 and has reached a low of $76.86.
Trade approach: A movement as big as -7.32% is a significantly 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 $77.37 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 $77.86 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.11% 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.