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Quantchabot has detected a promising Bull Put Spread trade opportunity for JPMORGAN CHASE (JPM) for the 10-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
JPM was recently trading at $138.95 and has an implied volatility of 11.87% for this period. Based on an analysis of the options available for JPM expiring on 10-Jan-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $138.15-$142.40 at expiration. In this scenario, the average linear return for the trade would be 56.56%.
52 week high: JPMORGAN CHASE recently reached a new 52-week high at $139.77. JPM had traded in the range $91.11-$139.02 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 JPM maintains its current direction and does not revert back to pricing on the bearish side of $138.95 on 10-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 JPMORGAN CHASE closes at or above $137.85 on 10-Jan-2020. Based on our risk-neutral analysis, there is a 52.85% 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.