Quantchabot has detected a new Bear Call Spread trade opportunity for ROSS STORES (ROST) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ROST was recently trading at $127.31 and has an implied volatility of 28.35% for this period. Based on an analysis of the options available for ROST expiring on 25-Apr-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $115.54-$127.60 at expiration. In this scenario, the average linear return for the trade would be 49.85%.
52 week low: ROSS STORES recently reached a new 52-week low at $127.31. ROST had traded in the range $127.53-$163.60 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 ROST maintains its current direction and does not revert back to pricing on the bullish side of $127.31 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 ROSS STORES closes at or below $128.05 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 51.44% 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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