Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for CITIZENS FINANCIAL GROUP INC (CFG) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CFG was recently trading at $22.04 and has an implied volatility of 58.90% for this period. Based on an analysis of the options available for CFG expiring on 19-Jun-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $21.67-$27.13 at expiration. In this scenario, the average linear return for the trade would be 50.85%.
Big 7.00% Change: After closing the last trading session at $20.60, CITIZENS FINANCIAL GROUP INC opened today at $20.84 and has reached a high of $22.18.
Trade approach: A movement as big as 7.00% is a significantly bullish indicator, so this trade is designed to be profitable if CFG maintains its current direction and does not revert back to pricing on the bearish side of $22.04 on 19-Jun-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 CITIZENS FINANCIAL GROUP INC closes at or above $21.60 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 50.56% 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.