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Quantchabot has detected a promising Bull Put Spread trade opportunity for NIKE (NKE) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NKE was recently trading at $79.57 and has an implied volatility of 52.85% for this period. Based on an analysis of the options available for NKE expiring on 15-May-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $79.68-$97.91 at expiration. In this scenario, the average linear return for the trade would be 45.06%.
Big 10.01% Change: After closing the last trading session at $72.33, NIKE opened today at $80.11 and has reached a high of $80.26.
Trade approach: A movement as big as 10.01% is a significantly bullish indicator, so this trade is designed to be profitable if NKE maintains its current direction and does not revert back to pricing on the bearish side of $79.57 on 15-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 NIKE closes at or above $79.65 on 15-May-2020. Based on our risk-neutral analysis, there is a 50.06% 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.