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Quantchabot has detected a promising Bull Put Spread trade opportunity for JINKOSOLAR HOLDING (JKS) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
JKS was recently trading at $64.30 and has an implied volatility of 131.92% for this period. Based on an analysis of the options available for JKS expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $64.30-$72.98 at expiration. In this scenario, the average linear return for the trade would be 74.06%.
Big 8.25% Change: After closing the last trading session at $59.40, JINKOSOLAR HOLDING opened today at $57.96 and has reached a high of $64.96.
Trade approach: A movement as big as 8.25% is a significantly bullish indicator, so this trade is designed to be profitable if JKS maintains its current direction and does not revert back to pricing on the bearish side of $64.30 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 JINKOSOLAR HOLDING closes at or above $62.85 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 57.15% 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.