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Quantchabot has detected a promising Bull Put Spread trade opportunity for GLOBE LIFE INC (GL) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GL was recently trading at $81.87 and has an implied volatility of 44.53% for this period. Based on an analysis of the options available for GL expiring on 19-Jun-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $81.93-$97.11 at expiration. In this scenario, the average linear return for the trade would be 57.30%.
Big 7.62% Change: After closing the last trading session at $76.07, GLOBE LIFE INC opened today at $76.37 and has reached a high of $82.08.
Trade approach: A movement as big as 7.62% is a significantly bullish indicator, so this trade is designed to be profitable if GL maintains its current direction and does not revert back to pricing on the bearish side of $81.87 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 GLOBE LIFE INC closes at or above $81.10 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 52.38% 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.