Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Put Spread trade opportunity for PEPSICO (PEP) for the 24-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. PEP was recently trading at $119.85 and has an implied volatility of 48.20% for this period. Based on an analysis of the options available for PEP expiring on 24-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $97.68-$119.96 at expiration. In this scenario, the average linear return for the trade would be 29.72%. 52 week low: PEPSICO recently reached a new 52-week low at $113.59. PEP had traded in the range $115.37-$147.20 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 PEP maintains its current direction and does not revert back to pricing on the bullish side of $119.85 on 24-Apr-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 PEPSICO closes at or below $121.20 on 24-Apr-2020. Based on our risk-neutral analysis, there is a 51.99% 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.