Quantchabot has detected a promising Bear Call Spread trade opportunity for CH ROBINSON WORLDWIDE (CHRW) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CHRW was recently trading at $83.15 and has an implied volatility of 26.77% for this period. Based on an analysis of the options available for CHRW expiring on 20-Oct-2023, there is a 34.94% likelihood that the underlying will close within the analyzed range of $81.30-$83.18 at expiration. In this scenario, the average linear return for the trade would be 47.10%.
52 week low: CH ROBINSON WORLDWIDE recently reached a new 52-week low at $82.46. CHRW had traded in the range $83.71-$108.05 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 CHRW maintains its current direction and does not revert back to pricing on the bullish side of $83.15 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 CH ROBINSON WORLDWIDE closes at or below $83.40 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 54.69% 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.