Send me real-time posts from this site at my email
Quantcha

52-Week Low Alert: Trading today’s movement in DRIL-QUIP

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Covered Put trade opportunity for DRIL-QUIP (DRQ) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DRQ was recently trading at $22.77 and has an implied volatility of 74.45% for this period. Based on an analysis of the options available for DRQ expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $18.94-$22.77 at expiration. In this scenario, the average linear return for the trade would be 17.60%.

52 week low: DRIL-QUIP recently reached a new 52-week low at $22.25. DRQ had traded in the range $23.91-$55.45 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 DRQ maintains its current direction and does not revert back to pricing on the bullish side of $22.77 on 16-Oct-2020. 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 DRIL-QUIP closes at or below $23.02 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 52.34% 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.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue