Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for VIACOMCBS INC CLASS B (VIAC) for the 1-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VIAC was recently trading at $16.75 and has an implied volatility of 74.24% for this period. Based on an analysis of the options available for VIAC expiring on 1-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.75-$18.14 at expiration. In this scenario, the average linear return for the trade would be 47.08%.
Big 7.13% Change: After closing the last trading session at $15.63, VIACOMCBS INC CLASS B opened today at $15.72 and has reached a high of $16.76.
Trade approach: A movement as big as 7.13% is a significantly bullish indicator, so this trade is designed to be profitable if VIAC maintains its current direction and does not revert back to pricing on the bearish side of $16.75 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 VIACOMCBS INC CLASS B closes at or above $16.66 on 1-May-2020. Based on our risk-neutral analysis, there is a 52.57% 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.