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Quantchabot has detected a promising Bull Put Spread trade opportunity for LIVERAMP HOLDINGS INC (RAMP) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RAMP was recently trading at $46.91 and has an implied volatility of 49.47% for this period. Based on an analysis of the options available for RAMP expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $46.92-$56.99 at expiration. In this scenario, the average linear return for the trade would be 46.83%.
Big 21.06% Change: After closing the last trading session at $38.75, LIVERAMP HOLDINGS INC opened today at $42.63 and has reached a high of $48.69.
Trade approach: A movement as big as 21.06% is a significantly bullish indicator, so this trade is designed to be profitable if RAMP maintains its current direction and does not revert back to pricing on the bearish side of $46.91 on 17-Jul-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 LIVERAMP HOLDINGS INC closes at or above $46.40 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 52.30% 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.