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Quantchabot has detected a promising Bull Put Spread trade opportunity for AMAZON.COM (AMZN) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMZN was recently trading at $2,155.55 and has an implied volatility of 24.60% for this period. Based on an analysis of the options available for AMZN expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $2,162.14-$2,399.87 at expiration. In this scenario, the average linear return for the trade would be 86.62%.
52 week high: AMAZON.COM recently reached a new 52-week high at $2,155.95. AMZN had traded in the range $1,586.00-$2,098.53 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 AMZN maintains its current direction and does not revert back to pricing on the bearish side of $2,155.55 on 17-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 bullish strategy, the trade would be profitable if AMAZON.COM closes at or above $2,160.35 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 50.32% 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.