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Quantchabot has detected a promising Bull Put Spread trade opportunity for GENERAL ELECTRIC (GE) for the 1-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GE was recently trading at $12.70 and has an implied volatility of 41.94% for this period. Based on an analysis of the options available for GE expiring on 1-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.69-$14.53 at expiration. In this scenario, the average linear return for the trade would be 75.48%.
52 week high: GENERAL ELECTRIC recently reached a new 52-week high at $12.70. GE had traded in the range $5.48-$12.68 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 GE maintains its current direction and does not revert back to pricing on the bearish side of $12.70 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 GENERAL ELECTRIC closes at or above $12.55 on 1-Apr-2021. Based on our risk-neutral analysis, there is a 53.18% 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.