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Quantchabot has detected a promising Bull Put Spread trade opportunity for UNITY SOFTWARE INC (U) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
U was recently trading at $121.58 and has an implied volatility of 89.09% for this period. Based on an analysis of the options available for U expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $121.61-$172.56 at expiration. In this scenario, the average linear return for the trade would be 112.24%.
52 week high: UNITY SOFTWARE INC recently reached a new 52-week high at $123.38. U had traded in the range $65.11-$122.95 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 U maintains its current direction and does not revert back to pricing on the bearish side of $121.58 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 UNITY SOFTWARE INC closes at or above $121.60 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.01% 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.