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Quantchabot has detected a promising Bull Put Spread trade opportunity for DMY TECHNOLOGY GROUP INC (DMYT) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DMYT was recently trading at $13.28 and has an implied volatility of 79.74% for this period. Based on an analysis of the options available for DMYT expiring on 20-Nov-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $13.28-$17.02 at expiration. In this scenario, the average linear return for the trade would be 52.57%.
Big 7.01% Change: After closing the last trading session at $12.41, DMY TECHNOLOGY GROUP INC opened today at $12.50 and has reached a high of $13.47.
Trade approach: A movement as big as 7.01% is a significantly bullish indicator, so this trade is designed to be profitable if DMYT maintains its current direction and does not revert back to pricing on the bearish side of $13.28 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 DMY TECHNOLOGY GROUP INC closes at or above $12.95 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 54.06% 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.