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Quantchabot has detected a promising Bull Put Spread trade opportunity for PAYCOM SOFTWARE INC (PAYC) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PAYC was recently trading at $270.46 and has an implied volatility of 54.35% for this period. Based on an analysis of the options available for PAYC expiring on 19-Jun-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $270.63-$331.76 at expiration. In this scenario, the average linear return for the trade would be 75.94%.
Big 14.27% Change: After closing the last trading session at $236.69, PAYCOM SOFTWARE INC opened today at $240.51 and has reached a high of $270.83.
Trade approach: A movement as big as 14.27% is a significantly bullish indicator, so this trade is designed to be profitable if PAYC maintains its current direction and does not revert back to pricing on the bearish side of $270.46 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 PAYCOM SOFTWARE INC closes at or above $266.50 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 53.01% 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.