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Quantchabot has detected a promising Bull Put Spread trade opportunity for ANTERO RESOURCES CORP (AR) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AR was recently trading at $12.36 and has an implied volatility of 67.38% for this period. Based on an analysis of the options available for AR expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.36-$15.01 at expiration. In this scenario, the average linear return for the trade would be 65.00%.
52 week high: ANTERO RESOURCES CORP recently reached a new 52-week high at $12.70. AR had traded in the range $2.30-$12.68 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 AR maintains its current direction and does not revert back to pricing on the bearish side of $12.36 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 ANTERO RESOURCES CORP closes at or above $12.15 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 53.45% 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.