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Quantchabot has detected a promising Bull Put Spread trade opportunity for AIR PRODUCTS & CHEMICALS (APD) for the 20-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APD was recently trading at $250.78 and has an implied volatility of 19.26% for this period. Based on an analysis of the options available for APD expiring on 20-Mar-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $251.24-$267.39 at expiration. In this scenario, the average linear return for the trade would be 36.99%.
52 week high: AIR PRODUCTS & CHEMICALS recently reached a new 52-week high at $252.00. APD had traded in the range $163.53-$251.62 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 APD maintains its current direction and does not revert back to pricing on the bearish side of $250.78 on 20-Mar-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 AIR PRODUCTS & CHEMICALS closes at or above $247.30 on 20-Mar-2020. Based on our risk-neutral analysis, there is a 60.00% 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.