Quantchabot has detected a promising Bear Call Spread trade opportunity for CNH INDUSTRIAL NV (CNHI) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CNHI was recently trading at $11.19 and has an implied volatility of 33.83% for this period. Based on an analysis of the options available for CNHI expiring on 19-Jan-2024, there is a 34.16% likelihood that the underlying will close within the analyzed range of $9.58-$11.35 at expiration. In this scenario, the average linear return for the trade would be 25.12%.
52 week low: CNH INDUSTRIAL NV recently reached a new 52-week low at $11.11. CNHI had traded in the range $11.43-$17.98 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 CNHI maintains its current direction and does not revert back to pricing on the bullish side of $11.19 on 19-Jan-2024. 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 CNH INDUSTRIAL NV closes at or below $11.45 on 19-Jan-2024. Based on our risk-neutral analysis, there is a 52.01% 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.