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Quantchabot has detected a promising Bull Put Spread trade opportunity for NXP SEMICONDUCTOR (NXPI) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NXPI was recently trading at $152.70 and has an implied volatility of 33.50% for this period. Based on an analysis of the options available for NXPI expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $152.35-$173.78 at expiration. In this scenario, the average linear return for the trade would be 71.63%.
52 week high: NXP SEMICONDUCTOR recently reached a new 52-week high at $152.85. NXPI had traded in the range $58.41-$152.48 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 NXPI maintains its current direction and does not revert back to pricing on the bearish side of $152.70 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 NXP SEMICONDUCTOR closes at or above $150.70 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 53.31% 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.