Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for FIDELITY NATIONAL FINANCIAL IN (FNF) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FNF was recently trading at $43.19 and has an implied volatility of 22.24% for this period. Based on an analysis of the options available for FNF expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $43.19-$44.67 at expiration. In this scenario, the average linear return for the trade would be 14.24%.
52 week high: FIDELITY NATIONAL FINANCIAL IN recently reached a new 52-week high at $43.33. FNF had traded in the range $23.58-$42.65 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 FNF maintains its current direction and does not revert back to pricing on the bearish side of $43.19 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 FIDELITY NATIONAL FINANCIAL IN closes at or above $43.15 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 51.13% 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.