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Quantchabot has detected a promising Bull Put Spread trade opportunity for FOX CORP CLASS A (FOXA) for the 1-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FOXA was recently trading at $26.59 and has an implied volatility of 44.88% for this period. Based on an analysis of the options available for FOXA expiring on 1-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $26.59-$27.91 at expiration. In this scenario, the average linear return for the trade would be 35.50%.
Big 7.07% Change: After closing the last trading session at $24.84, FOX CORP CLASS A opened today at $25.21 and has reached a high of $26.62.
Trade approach: A movement as big as 7.07% is a significantly bullish indicator, so this trade is designed to be profitable if FOXA maintains its current direction and does not revert back to pricing on the bearish side of $26.59 on 1-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 FOX CORP CLASS A closes at or above $26.55 on 1-May-2020. Based on our risk-neutral analysis, there is a 51.29% 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.