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Quantchabot has detected a promising Bull Put Spread trade opportunity for ZILLOW GROUP INC. CLASS C CAPITAL STOCK (Z) for the 31-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
Z was recently trading at $69.26 and has an implied volatility of 32.11% for this period. Based on an analysis of the options available for Z expiring on 31-Jul-2020, there is a 34.24% likelihood that the underlying will close within the analyzed range of $69.26-$69.93 at expiration. In this scenario, the average linear return for the trade would be 24.37%.
52 week high: ZILLOW GROUP INC. CLASS C CAPITAL STOCK recently reached a new 52-week high at $71.00. Z had traded in the range $20.04-$69.40 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 Z maintains its current direction and does not revert back to pricing on the bearish side of $69.26 on 31-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 ZILLOW GROUP INC. CLASS C CAPITAL STOCK closes at or above $69.26 on 31-Jul-2020. Based on our risk-neutral analysis, there is a 50.01% 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.