Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for LYFT INC. CLASS A COMMON STOCK (LYFT) for the 1-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LYFT was recently trading at $34.28 and has an implied volatility of 86.01% for this period. Based on an analysis of the options available for LYFT expiring on 1-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $34.28-$37.66 at expiration. In this scenario, the average linear return for the trade would be 65.05%.
Big 7.27% Change: After closing the last trading session at $31.96, LYFT INC. CLASS A COMMON STOCK opened today at $32.27 and has reached a high of $34.47.
Trade approach: A movement as big as 7.27% is a significantly bullish indicator, so this trade is designed to be profitable if LYFT maintains its current direction and does not revert back to pricing on the bearish side of $34.28 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 LYFT INC. CLASS A COMMON STOCK closes at or above $34.10 on 1-May-2020. Based on our risk-neutral analysis, there is a 52.29% 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.