Quantchabot has detected a new Bear Call Spread trade opportunity for PHILLIPS 66 (PSX) for the 31-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PSX was recently trading at $109.13 and has an implied volatility of 32.26% for this period. Based on an analysis of the options available for PSX expiring on 31-Jan-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $98.59-$109.67 at expiration. In this scenario, the average linear return for the trade would be 51.11%.
52 week low: PHILLIPS 66 recently reached a new 52-week low at $108.94. PSX had traded in the range $109.39-$174.08 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 PSX maintains its current direction and does not revert back to pricing on the bullish side of $109.13 on 31-Jan-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 PHILLIPS 66 closes at or below $109.70 on 31-Jan-2025. Based on our risk-neutral analysis, there is a 50.10% 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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