Quantchabot has detected a promising Bear Call Spread trade opportunity for PFIZER (PFE) for the 27-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PFE was recently trading at $31.41 and has an implied volatility of 29.47% for this period. Based on an analysis of the options available for PFE expiring on 27-Oct-2023, there is a 34.38% likelihood that the underlying will close within the analyzed range of $30.05-$31.45 at expiration. In this scenario, the average linear return for the trade would be 31.93%.
52 week low: PFIZER recently reached a new 52-week low at $31.21. PFE had traded in the range $31.77-$54.93 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 PFE maintains its current direction and does not revert back to pricing on the bullish side of $31.41 on 27-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 PFIZER closes at or below $31.45 on 27-Oct-2023. Based on our risk-neutral analysis, there is a 50.08% 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.