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Quantchabot has detected a promising Bull Put Spread trade opportunity for PLURALSIGHT INC. CLASS A COMMON STOCK (PS) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PS was recently trading at $21.77 and has an implied volatility of 62.08% for this period. Based on an analysis of the options available for PS expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $21.78-$27.80 at expiration. In this scenario, the average linear return for the trade would be 57.40%.
Big 7.27% Change: After closing the last trading session at $20.30, PLURALSIGHT INC. CLASS A COMMON STOCK opened today at $20.61 and has reached a high of $22.33.
Trade approach: A movement as big as 7.27% is a significantly bullish indicator, so this trade is designed to be profitable if PS maintains its current direction and does not revert back to pricing on the bearish side of $21.77 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 PLURALSIGHT INC. CLASS A COMMON STOCK closes at or above $21.55 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 51.74% 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.