The automated Quantcha Trade Ideas Service has detected a promising Bear Call Spread trade opportunity for COTY INC (COTY) for the 3-Nov-2017 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

COTY was recently trading at $15.67 and has an implied volatility of 33.76% for this period. Based on an analysis of the options available for COTY expiring on 3-Nov-2017, there is a 34.15% likelihood that the underlying will close within the analyzed range of $14.72-$15.72 at expiration. In this scenario, the average linear return for the trade would be 37.22%.

52 week low: COTY INC recently reached a new 52-week low at $15.33. COTY had traded in the range $15.83-$23.67 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 COTY maintains its current direction and does not revert back to pricing on the bullish side of $15.67 on 3-Nov-2017. 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 COTY INC closes at or below $15.79 on 3-Nov-2017. Based on our risk-neutral analysis, there is a 52.85% 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.