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Quantchabot has detected a promising Bull Put Spread trade opportunity for SKYWORKS SOLUTIONS (SWKS) for the 1-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SWKS was recently trading at $190.32 and has an implied volatility of 41.39% for this period. Based on an analysis of the options available for SWKS expiring on 1-Apr-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $190.34-$219.50 at expiration. In this scenario, the average linear return for the trade would be 63.59%.
52 week high: SKYWORKS SOLUTIONS recently reached a new 52-week high at $193.61. SWKS had traded in the range $67.90-$190.34 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 SWKS maintains its current direction and does not revert back to pricing on the bearish side of $190.32 on 1-Apr-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 SKYWORKS SOLUTIONS closes at or above $187.90 on 1-Apr-2021. Based on our risk-neutral analysis, there is a 53.61% 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.