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Quantchabot has detected a promising Bull Put Spread trade opportunity for COCA-COLA EUROPACIFIC PARTNERS PLC (CCEP) for the 20-Aug-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CCEP was recently trading at $61.45 and has an implied volatility of 27.56% for this period. Based on an analysis of the options available for CCEP expiring on 20-Aug-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $61.47-$70.72 at expiration. In this scenario, the average linear return for the trade would be 44.40%.
52 week high: COCA-COLA EUROPACIFIC PARTNERS PLC recently reached a new 52-week high at $61.80. CCEP had traded in the range $34.02-$60.54 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 CCEP maintains its current direction and does not revert back to pricing on the bearish side of $61.45 on 20-Aug-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 COCA-COLA EUROPACIFIC PARTNERS PLC closes at or above $61.35 on 20-Aug-2021. Based on our risk-neutral analysis, there is a 50.57% 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.