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Quantchabot has detected a promising Bear Put Spread trade opportunity for NATIONAL INSTRUMENTS (NATI) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NATI was recently trading at $41.28 and has an implied volatility of 24.19% for this period. Based on an analysis of the options available for NATI expiring on 18-Jun-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $37.53-$41.02 at expiration. In this scenario, the average linear return for the trade would be 22.28%.
Big -9.79% Change: After closing the last trading session at $45.76, NATIONAL INSTRUMENTS opened today at $43.18 and has reached a low of $41.23.
Trade approach: A movement as big as -9.79% is a significantly bearish indicator, so this trade is designed to be profitable if NATI maintains its current direction and does not revert back to pricing on the bullish side of $41.28 on 18-Jun-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if NATIONAL INSTRUMENTS closes at or below $41.05 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 50.37% 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.