Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for ARCHER-DANIELS MIDLAND (ADM) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ADM was recently trading at $64.70 and has an implied volatility of 21.15% for this period. Based on an analysis of the options available for ADM expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $64.71-$69.72 at expiration. In this scenario, the average linear return for the trade would be 42.51%.
52 week high: ARCHER-DANIELS MIDLAND recently reached a new 52-week high at $65.22. ADM had traded in the range $33.01-$63.90 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 ADM maintains its current direction and does not revert back to pricing on the bearish side of $64.70 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 ARCHER-DANIELS MIDLAND closes at or above $63.50 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 59.98% 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.