52-Week High Alert: Trading today’s movement in APTIV PLC $APTV

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Quantchabot has detected a promising Bull Put Spread trade opportunity for APTIV PLC (APTV) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

APTV was recently trading at $115.45 and has an implied volatility of 36.84% for this period. Based on an analysis of the options available for APTV expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $115.48-$133.81 at expiration. In this scenario, the average linear return for the trade would be 51.97%.

52 week high: APTIV PLC recently reached a new 52-week high at $115.93. APTV had traded in the range $29.22-$114.55 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 APTV maintains its current direction and does not revert back to pricing on the bearish side of $115.45 on 15-Jan-2021. 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 APTIV PLC closes at or above $114.40 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.55% 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.