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Quantchabot has detected a promising Bull Put Spread trade opportunity for AGILENT TECHNOLOGIES (A) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
A was recently trading at $107.20 and has an implied volatility of 30.58% for this period. Based on an analysis of the options available for A expiring on 20-Nov-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $107.22-$117.92 at expiration. In this scenario, the average linear return for the trade would be 41.43%.
52 week high: AGILENT TECHNOLOGIES recently reached a new 52-week high at $107.54. A had traded in the range $61.13-$107.00 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 A maintains its current direction and does not revert back to pricing on the bearish side of $107.20 on 20-Nov-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 AGILENT TECHNOLOGIES closes at or above $106.75 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 51.82% 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.