Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for IROBOT (IRBT) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IRBT was recently trading at $90.26 and has an implied volatility of 51.48% for this period. Based on an analysis of the options available for IRBT expiring on 16-Oct-2020, there is a 34.16% likelihood that the underlying will close within the analyzed range of $90.26-$93.11 at expiration. In this scenario, the average linear return for the trade would be 15.38%.
52 week high: IROBOT recently reached a new 52-week high at $92.00. IRBT had traded in the range $32.79-$91.40 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 IRBT maintains its current direction and does not revert back to pricing on the bearish side of $90.26 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 IROBOT closes at or above $89.60 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 59.35% 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.