Quantchabot has detected a promising Bear Call Spread trade opportunity for J.B. HUNT TRANSPORT (JBHT) for the 17-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
JBHT was recently trading at $180.32 and has an implied volatility of 27.64% for this period. Based on an analysis of the options available for JBHT expiring on 17-Nov-2023, there is a 34.21% likelihood that the underlying will close within the analyzed range of $167.23-$181.19 at expiration. In this scenario, the average linear return for the trade would be 22.38%.
Big -8.00% Change: After closing the last trading session at $196.01, J.B. HUNT TRANSPORT opened today at $185.33 and has reached a low of $179.25.
Trade approach: A movement as big as -8.00% is a significantly bearish indicator, so this trade is designed to be profitable if JBHT maintains its current direction and does not revert back to pricing on the bullish side of $180.32 on 17-Nov-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 J.B. HUNT TRANSPORT closes at or below $181.20 on 17-Nov-2023. Based on our risk-neutral analysis, there is a 50.03% 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.