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Quantchabot has detected a promising Bull Put Spread trade opportunity for AMERICAN AIRLINES GROUP INC. C (AAL) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AAL was recently trading at $20.95 and has an implied volatility of 74.10% for this period. Based on an analysis of the options available for AAL expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $20.95-$27.81 at expiration. In this scenario, the average linear return for the trade would be 100.86%.
Big 12.15% Change: After closing the last trading session at $18.68, AMERICAN AIRLINES GROUP INC. C opened today at $19.84 and has reached a high of $21.11.
Trade approach: A movement as big as 12.15% is a significantly bullish indicator, so this trade is designed to be profitable if AAL maintains its current direction and does not revert back to pricing on the bearish side of $20.95 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 AMERICAN AIRLINES GROUP INC. C closes at or above $20.94 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 50.09% 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.