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Quantchabot has detected a promising Bull Put Spread trade opportunity for PBF ENERGY (PBF) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PBF was recently trading at $15.22 and has an implied volatility of 76.67% for this period. Based on an analysis of the options available for PBF expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $15.23-$20.01 at expiration. In this scenario, the average linear return for the trade would be 70.14%.
Big 7.37% Change: After closing the last trading session at $14.18, PBF ENERGY opened today at $14.62 and has reached a high of $15.35.
Trade approach: A movement as big as 7.37% is a significantly bullish indicator, so this trade is designed to be profitable if PBF maintains its current direction and does not revert back to pricing on the bearish side of $15.22 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 PBF ENERGY closes at or above $15.10 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 51.22% 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.