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Quantchabot has detected a promising Bull Put Spread trade opportunity for BROOKS AUTOMATION (BRKS) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BRKS was recently trading at $53.92 and has an implied volatility of 43.93% for this period. Based on an analysis of the options available for BRKS expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $53.84-$65.91 at expiration. In this scenario, the average linear return for the trade would be 42.75%.
Big 13.97% Change: After closing the last trading session at $47.31, BROOKS AUTOMATION opened today at $50.00 and has reached a high of $54.53.
Trade approach: A movement as big as 13.97% is a significantly bullish indicator, so this trade is designed to be profitable if BRKS maintains its current direction and does not revert back to pricing on the bearish side of $53.92 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 BROOKS AUTOMATION closes at or above $51.95 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 57.01% 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.