Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for VODAFONE GROUP PLC AMERICAN DE (VOD) for the 14-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VOD was recently trading at $19.28 and has an implied volatility of 23.23% for this period. Based on an analysis of the options available for VOD expiring on 14-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $19.28-$20.05 at expiration. In this scenario, the average linear return for the trade would be 29.94%.
52 week high: VODAFONE GROUP PLC AMERICAN DE recently reached a new 52-week high at $19.46. VOD had traded in the range $13.14-$19.45 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 VOD maintains its current direction and does not revert back to pricing on the bearish side of $19.28 on 14-May-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 VODAFONE GROUP PLC AMERICAN DE closes at or above $19.24 on 14-May-2021. Based on our risk-neutral analysis, there is a 52.15% 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.