Quantchabot has detected a new Bear Call Spread trade opportunity for TOLL BROTHERS (TOL) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TOL was recently trading at $106.22 and has an implied volatility of 42.42% for this period. Based on an analysis of the options available for TOL expiring on 25-Apr-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $91.95-$106.81 at expiration. In this scenario, the average linear return for the trade would be 43.32%.
52 week low: TOLL BROTHERS recently reached a new 52-week low at $105.38. TOL had traded in the range $105.73-$169.52 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 TOL maintains its current direction and does not revert back to pricing on the bullish side of $106.22 on 25-Apr-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 TOLL BROTHERS closes at or below $106.95 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 50.34% 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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