Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for SANOFI (SNY) for the 17-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SNY was recently trading at $50.87 and has an implied volatility of 17.96% for this period. Based on an analysis of the options available for SNY expiring on 17-Jan-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $50.90-$52.50 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
52 week high: SANOFI recently reached a new 52-week high at $50.98. SNY had traded in the range $40.00-$50.90 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 SNY maintains its current direction and does not revert back to pricing on the bearish side of $50.87 on 17-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 SANOFI closes at or above $49.90 on 17-Jan-2020. Based on our risk-neutral analysis, there is a 73.90% 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.