Quantchabot has detected a new Bear Call Spread trade opportunity for MOSAIC (MOS) for the 7-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MOS was recently trading at $24.02 and has an implied volatility of 34.91% for this period. Based on an analysis of the options available for MOS expiring on 7-Feb-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $21.51-$24.14 at expiration. In this scenario, the average linear return for the trade would be 70.85%.
52 week low: MOSAIC recently reached a new 52-week low at $23.56. MOS had traded in the range $23.60-$37.30 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 MOS maintains its current direction and does not revert back to pricing on the bullish side of $24.02 on 7-Feb-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 MOSAIC closes at or below $24.15 on 7-Feb-2025. Based on our risk-neutral analysis, there is a 50.22% 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.
Leave a Reply
You must be logged in to post a comment.