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Quantchabot has detected a promising Bull Put Spread trade opportunity for FMC (FMC) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FMC was recently trading at $114.79 and has an implied volatility of 27.19% for this period. Based on an analysis of the options available for FMC expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $114.82-$128.00 at expiration. In this scenario, the average linear return for the trade would be 51.92%.
52 week high: FMC recently reached a new 52-week high at $116.60. FMC had traded in the range $56.77-$115.91 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 FMC maintains its current direction and does not revert back to pricing on the bearish side of $114.79 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 FMC closes at or above $114.05 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.46% 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.