Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for ENERGY TRANSFER LP (ET) for the 8-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ET was recently trading at $7.85 and has an implied volatility of 72.88% for this period. Based on an analysis of the options available for ET expiring on 8-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.55-$8.48 at expiration. In this scenario, the average linear return for the trade would be 43.83%.
Big 8.27% Change: After closing the last trading session at $7.25, ENERGY TRANSFER LP opened today at $7.47 and has reached a high of $7.86.
Trade approach: A movement as big as 8.27% is a significantly bullish indicator, so this trade is designed to be profitable if ET maintains its current direction and does not revert back to pricing on the bearish side of $7.85 on 8-May-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 ENERGY TRANSFER LP closes at or above $7.45 on 8-May-2020. Based on our risk-neutral analysis, there is a 54.37% 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.