Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for UNIVERSAL DISPLAY CORPORATION (OLED) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
OLED was recently trading at $222.22 and has an implied volatility of 35.61% for this period. Based on an analysis of the options available for OLED expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $222.13-$255.48 at expiration. In this scenario, the average linear return for the trade would be 66.44%.
52 week high: UNIVERSAL DISPLAY CORPORATION recently reached a new 52-week high at $222.46. OLED had traded in the range $105.11-$222.20 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 OLED maintains its current direction and does not revert back to pricing on the bearish side of $222.22 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 UNIVERSAL DISPLAY CORPORATION closes at or above $221.30 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 51.06% 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.