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Quantchabot has detected a promising Covered Put trade opportunity for NATIONAL INSTRUMENTS (NATI) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NATI was recently trading at $33.23 and has an implied volatility of 43.19% for this period. Based on an analysis of the options available for NATI expiring on 18-Sep-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $28.13-$32.98 at expiration. In this scenario, the average linear return for the trade would be 14.98%.
Big -12.18% Change: After closing the last trading session at $37.84, NATIONAL INSTRUMENTS opened today at $35.55 and has reached a low of $32.52.
Trade approach: A movement as big as -12.18% is a significantly bearish indicator, so this trade is designed to be profitable if NATI maintains its current direction and does not revert back to pricing on the bullish side of $33.23 on 18-Sep-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if NATIONAL INSTRUMENTS closes at or below $33.42 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 53.35% 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.