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Quantchabot has detected a promising Bull Put Spread trade opportunity for TESLA INC. (TSLA) for the 24-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TSLA was recently trading at $472.87 and has an implied volatility of 46.64% for this period. Based on an analysis of the options available for TSLA expiring on 24-Jan-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $473.23-$522.22 at expiration. In this scenario, the average linear return for the trade would be 97.14%.
52 week high: TESLA INC. recently reached a new 52-week high at $475.81. TSLA had traded in the range $176.99-$454.00 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 TSLA maintains its current direction and does not revert back to pricing on the bearish side of $472.87 on 24-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 TESLA INC. closes at or above $472.30 on 24-Jan-2020. Based on our risk-neutral analysis, there is a 50.80% 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.