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Quantchabot has detected a promising Bull Put Spread trade opportunity for PELOTON INTERACTIVE INC. CLASS A COMMON STOCK (PTON) for the 17-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PTON was recently trading at $34.92 and has an implied volatility of 77.10% for this period. Based on an analysis of the options available for PTON expiring on 17-Jan-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $35.00-$46.99 at expiration. In this scenario, the average linear return for the trade would be 92.04%.
52 week high: PELOTON INTERACTIVE INC. CLASS A COMMON STOCK recently reached a new 52-week high at $36.00. PTON had traded in the range $20.46-$35.75 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if PTON maintains its current direction and does not revert back to pricing on the bearish side of $34.92 on 17-Jan-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if PELOTON INTERACTIVE INC. CLASS A COMMON STOCK closes at or above $34.50 on 17-Jan-2020. Based on our risk-neutral analysis, there is a 51.93% 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.
This is an automated post generated based on a market analysis of delayed data at 12/3/2019 10:35:54 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.