Quantchabot has detected a new Bear Call Spread trade opportunity for FORTREA HOLDINGS INC. (FTRE) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FTRE was recently trading at $15.79 and has an implied volatility of 58.74% for this period. Based on an analysis of the options available for FTRE expiring on 21-Feb-2025, there is a 34.28% likelihood that the underlying will close within the analyzed range of $13.86-$15.83 at expiration. In this scenario, the average linear return for the trade would be 36.03%.
52 week low: FORTREA HOLDINGS INC. recently reached a new 52-week low at $15.53. FTRE had traded in the range $16.30-$41.02 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 FTRE maintains its current direction and does not revert back to pricing on the bullish side of $15.79 on 21-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 FORTREA HOLDINGS INC. closes at or below $16.15 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 56.02% 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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