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Quantchabot has detected a promising Bull Put Spread trade opportunity for APPLIED MATERIALS (AMAT) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMAT was recently trading at $123.81 and has an implied volatility of 43.80% for this period. Based on an analysis of the options available for AMAT expiring on 16-Apr-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $123.61-$146.82 at expiration. In this scenario, the average linear return for the trade would be 66.45%.
Big 9.15% Change: After closing the last trading session at $113.43, APPLIED MATERIALS opened today at $121.61 and has reached a high of $124.50.
Trade approach: A movement as big as 9.15% is a significantly bullish indicator, so this trade is designed to be profitable if AMAT maintains its current direction and does not revert back to pricing on the bearish side of $123.81 on 16-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 APPLIED MATERIALS closes at or above $122.95 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 51.24% 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.