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Quantchabot has detected a promising Bull Put Spread trade opportunity for MONDELEZ INTERNATIONAL (MDLZ) for the 2-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MDLZ was recently trading at $62.23 and has an implied volatility of 18.43% for this period. Based on an analysis of the options available for MDLZ expiring on 2-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $62.24-$66.46 at expiration. In this scenario, the average linear return for the trade would be 62.95%.
52 week high: MONDELEZ INTERNATIONAL recently reached a new 52-week high at $62.79. MDLZ had traded in the range $48.77-$62.74 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 MDLZ maintains its current direction and does not revert back to pricing on the bearish side of $62.23 on 2-Jul-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 MONDELEZ INTERNATIONAL closes at or above $62.20 on 2-Jul-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.