The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for PIONEER NATURAL RESOURCES () for the 15-Sep-2017 expiration period. You can analyze the opportunity in depth over at the .
PXD was recently trading at $143.39 and has an implied volatility of 28.93% for this period. Based on an analysis of the options available for PXD expiring on 15-Sep-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $130.56-$144.07 at expiration. In this scenario, the average linear return for the trade would be 60.17%.
52 week low: PIONEER NATURAL RESOURCES recently reached a new 52-week low at $143.39. PXD had traded in the range $153.10-$199.83 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 PXD maintains its current direction and does not revert back to pricing on the bullish side of $143.39 on 15-Sep-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 PIONEER NATURAL RESOURCES closes at or below $144.20 on 15-Sep-2017. Based on our risk-neutral analysis, there is a 50.36% 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 .
This is an automated post generated based on a market analysis of delayed data at 8/3/2017 10:07:23 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.