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Quantchabot has detected a promising Bull Put Spread trade opportunity for APPLE (AAPL) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AAPL was recently trading at $408.77 and has an implied volatility of 29.52% for this period. Based on an analysis of the options available for AAPL expiring on 16-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $408.09-$467.51 at expiration. In this scenario, the average linear return for the trade would be 76.09%.
52 week high: APPLE recently reached a new 52-week high at $412.00. AAPL had traded in the range $192.58-$399.82 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if AAPL maintains its current direction and does not revert back to pricing on the bearish side of $408.77 on 16-Oct-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 APPLE closes at or above $406.05 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 51.47% 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.