Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for CITIZENS FINANCIAL GROUP INC (CFG) for the 19-Mar-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CFG was recently trading at $44.10 and has an implied volatility of 40.49% for this period. Based on an analysis of the options available for CFG expiring on 19-Mar-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $44.10-$48.96 at expiration. In this scenario, the average linear return for the trade would be 59.63%.
52 week high: CITIZENS FINANCIAL GROUP INC recently reached a new 52-week high at $44.53. CFG had traded in the range $14.12-$42.79 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 CFG maintains its current direction and does not revert back to pricing on the bearish side of $44.10 on 19-Mar-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 CITIZENS FINANCIAL GROUP INC closes at or above $44.00 on 19-Mar-2021. Based on our risk-neutral analysis, there is a 50.90% 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.