Quantchabot has detected a new Bear Put Spread trade opportunity for RENTOKIL INITIAL PLC (RTO) for the 21-Mar-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RTO was recently trading at $21.00 and has an implied volatility of 46.89% for this period. Based on an analysis of the options available for RTO expiring on 21-Mar-2025, there is a 34.35% likelihood that the underlying will close within the analyzed range of $19.48-$21.02 at expiration. In this scenario, the average linear return for the trade would be 18.46%.
52 week low: RENTOKIL INITIAL PLC recently reached a new 52-week low at $20.60. RTO had traded in the range $21.69-$34.07 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 RTO maintains its current direction and does not revert back to pricing on the bullish side of $21.00 on 21-Mar-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 RENTOKIL INITIAL PLC closes at or below $21.10 on 21-Mar-2025. Based on our risk-neutral analysis, there is a 51.90% 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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