Quantchabot has detected a promising Bear Call Spread trade opportunity for THERMO FISHER SCIENTIFIC (TMO) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TMO was recently trading at $471.95 and has an implied volatility of 23.51% for this period. Based on an analysis of the options available for TMO expiring on 20-Oct-2023, there is a 35.40% likelihood that the underlying will close within the analyzed range of $464.50-$472.08 at expiration. In this scenario, the average linear return for the trade would be 23.46%.
52 week low: THERMO FISHER SCIENTIFIC recently reached a new 52-week low at $468.70. TMO had traded in the range $470.61-$609.85 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 TMO maintains its current direction and does not revert back to pricing on the bullish side of $471.95 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 THERMO FISHER SCIENTIFIC closes at or below $475.95 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 70.27% 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.