Quantchabot has detected a new Bear Call Spread trade opportunity for SENSATA TECHNOLOGIES (ST) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ST was recently trading at $27.57 and has an implied volatility of 33.96% for this period. Based on an analysis of the options available for ST expiring on 17-Jan-2025, there is a 34.23% likelihood that the underlying will close within the analyzed range of $25.16-$27.67 at expiration. In this scenario, the average linear return for the trade would be 79.63%.
52 week low: SENSATA TECHNOLOGIES recently reached a new 52-week low at $27.23. ST had traded in the range $28.04-$43.14 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 ST maintains its current direction and does not revert back to pricing on the bullish side of $27.57 on 17-Jan-2025. 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 SENSATA TECHNOLOGIES closes at or below $28.20 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 57.97% 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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