Quantchabot has detected a new Bear Call Spread trade opportunity for PEPSICO (PEP) for the 27-Jun-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PEP was recently trading at $131.10 and has an implied volatility of 20.30% for this period. Based on an analysis of the options available for PEP expiring on 27-Jun-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $121.28-$130.42 at expiration. In this scenario, the average linear return for the trade would be 71.89%.
52 week low: PEPSICO recently reached a new 52-week low at $130.06. PEP had traded in the range $130.16-$183.41 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 PEP maintains its current direction and does not revert back to pricing on the bullish side of $131.10 on 27-Jun-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 PEPSICO closes at or below $130.50 on 27-Jun-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.
Leave a Reply
You must be logged in to post a comment.