52-Week Low Alert: Trading today’s movement in JOHNSON CONTROLS $JCI

Quantchabot has detected a promising Bear Put Spread trade opportunity for JOHNSON CONTROLS (JCI) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

JCI was recently trading at $50.88 and has an implied volatility of 28.27% for this period. Based on an analysis of the options available for JCI expiring on 20-Oct-2023, there is a 34.94% likelihood that the underlying will close within the analyzed range of $49.69-$50.90 at expiration. In this scenario, the average linear return for the trade would be 37.11%.

52 week low: JOHNSON CONTROLS recently reached a new 52-week low at $50.87. JCI had traded in the range $50.96-$70.43 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 JCI maintains its current direction and does not revert back to pricing on the bullish side of $50.88 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 JOHNSON CONTROLS closes at or below $50.95 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 51.68% 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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