Quantchabot has detected a new Bear Call Spread trade opportunity for ASHLAND INC (ASH) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ASH was recently trading at $70.84 and has an implied volatility of 25.24% for this period. Based on an analysis of the options available for ASH expiring on 17-Jan-2025, there is a 34.24% likelihood that the underlying will close within the analyzed range of $66.47-$71.07 at expiration. In this scenario, the average linear return for the trade would be 89.28%.
52 week low: ASHLAND INC recently reached a new 52-week low at $70.70. ASH had traded in the range $71.56-$102.50 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 ASH maintains its current direction and does not revert back to pricing on the bullish side of $70.84 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 ASHLAND INC closes at or below $71.70 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 55.27% 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.
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