Rating
3.5 / 5
Recommendation
Hold
Credit put spread analysis · · Good setup
IV Rank
88
Implied volatility percentile
Trend
0.54
Long-term trend score
Safety
7/9
Quality checks passed
Drop
-6.3%
Day 2 of drop
Reversal
Doji
Day 2
1Y Change
11.9%
Trailing 12 months
Earnings
Clear
No event in window
Earlier analyses
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AZO has seen a significant drop of 6.32% in a single day, but it's essential to analyze if this is an opportunity for a credit put spread. The stock has been performing well, rising by 11.9% in the past two months with a…
AI analysis
Options Trading Expert · Mar 5, 2026
The recent drop in AZO's price by 6.32% has resulted in an interesting opportunity for a credit put spread. With a strong 11.9% increase over two months and Safety score of 7/9, a Doji reversal day 2 pattern provides a promising setup.
However, considering the high IV at 88% and the current stock price of $3641.29, I recommend waiting to enter the credit put spread.
Wait for a few more days until the market assesses the impact of the drop on AZO and the volatility decreases. Once the stock reaches a price point ideal for a credit put spread (sellStrike: $3400-3500, buyStrike: $3300-3400), look to enter a position with a credit of around $100-$150.