Quantchabot has detected a new Bear Call Spread trade opportunity for REGAL BELOIT CORP (RRX) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RRX was recently trading at $117.36 and has an implied volatility of 45.22% for this period. Based on an analysis of the options available for RRX expiring on 17-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $101.84-$117.54 at expiration. In this scenario, the average linear return for the trade would be 35.35%.
52 week low: REGAL BELOIT CORP recently reached a new 52-week low at $116.46. RRX had traded in the range $117.05-$185.28 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 RRX maintains its current direction and does not revert back to pricing on the bullish side of $117.36 on 17-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 REGAL BELOIT CORP closes at or below $118.40 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 52.05% 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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