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Quantchabot has detected a promising Bull Put Spread trade opportunity for PHILIP MORRIS (PM) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PM was recently trading at $95.95 and has an implied volatility of 18.16% for this period. Based on an analysis of the options available for PM expiring on 18-Jun-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $95.96-$102.38 at expiration. In this scenario, the average linear return for the trade would be 52.98%.
52 week high: PHILIP MORRIS recently reached a new 52-week high at $96.12. PM had traded in the range $66.85-$95.60 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 PM maintains its current direction and does not revert back to pricing on the bearish side of $95.95 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 bullish strategy, the trade would be profitable if PHILIP MORRIS closes at or above $95.62 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 52.21% 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.