52-Week High Alert: Trading today’s movement in TEXAS INSTRUMENTS $TXN

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Quantchabot has detected a promising Bull Put Spread trade opportunity for TEXAS INSTRUMENTS (TXN) for the 22-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TXN was recently trading at $170.16 and has an implied volatility of 25.30% for this period. Based on an analysis of the options available for TXN expiring on 22-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $170.17-$177.93 at expiration. In this scenario, the average linear return for the trade would be 53.50%.

52 week high: TEXAS INSTRUMENTS recently reached a new 52-week high at $170.59. TXN had traded in the range $93.09-$168.70 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 TXN maintains its current direction and does not revert back to pricing on the bearish side of $170.16 on 22-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 TEXAS INSTRUMENTS closes at or above $169.61 on 22-Jan-2021. Based on our risk-neutral analysis, there is a 52.93% 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.