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Quantchabot has detected a promising Bull Put Spread trade opportunity for CNO FINANCIAL GROUP (CNO) for the 20-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CNO was recently trading at $20.72 and has an implied volatility of 23.80% for this period. Based on an analysis of the options available for CNO expiring on 20-Mar-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $20.76-$22.48 at expiration. In this scenario, the average linear return for the trade would be 23.64%.
Big 9.41% Change: After closing the last trading session at $18.94, CNO FINANCIAL GROUP opened today at $19.44 and has reached a high of $20.92.
Trade approach: A movement as big as 9.41% is a significantly bullish indicator, so this trade is designed to be profitable if CNO maintains its current direction and does not revert back to pricing on the bearish side of $20.72 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 CNO FINANCIAL GROUP closes at or above $20.60 on 20-Mar-2020. Based on our risk-neutral analysis, there is a 53.82% 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.