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Quantchabot has detected a promising Bull Put Spread trade opportunity for ALPHABET INC CLASS A (GOOGL) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GOOGL was recently trading at $1,339.03 and has an implied volatility of 27.65% for this period. Based on an analysis of the options available for GOOGL expiring on 19-Jun-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $1,339.86-$1,486.32 at expiration. In this scenario, the average linear return for the trade would be 62.52%.
Big 8.64% Change: After closing the last trading session at $1,232.59, ALPHABET INC CLASS A opened today at $1,345.00 and has reached a high of $1,351.09.
Trade approach: A movement as big as 8.64% is a significantly bullish indicator, so this trade is designed to be profitable if GOOGL maintains its current direction and does not revert back to pricing on the bearish side of $1,339.03 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 ALPHABET INC CLASS A closes at or above $1,333.20 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 51.91% 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.