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Quantchabot has detected a promising Bull Put Spread trade opportunity for ALPHABET INC CLASS A (GOOGL) for the 31-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GOOGL was recently trading at $1,430.83 and has an implied volatility of 15.94% for this period. Based on an analysis of the options available for GOOGL expiring on 31-Jan-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $1,432.05-$1,485.34 at expiration. In this scenario, the average linear return for the trade would be 72.03%.
52 week high: ALPHABET INC CLASS A recently reached a new 52-week high at $1,439.89. GOOGL had traded in the range $1,027.03-$1,428.68 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 GOOGL maintains its current direction and does not revert back to pricing on the bearish side of $1,430.83 on 31-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 ALPHABET INC CLASS A closes at or above $1,431.30 on 31-Jan-2020. Based on our risk-neutral analysis, there is a 50.57% 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.