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Quantchabot has detected a promising Bull Put Spread trade opportunity for SUNPOWER (SPWR) for the 30-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SPWR was recently trading at $26.35 and has an implied volatility of 72.19% for this period. Based on an analysis of the options available for SPWR expiring on 30-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $26.35-$34.45 at expiration. In this scenario, the average linear return for the trade would be 79.10%.
Big 7.86% Change: After closing the last trading session at $24.43, SUNPOWER opened today at $24.49 and has reached a high of $26.52.
Trade approach: A movement as big as 7.86% is a significantly bullish indicator, so this trade is designed to be profitable if SPWR maintains its current direction and does not revert back to pricing on the bearish side of $26.35 on 30-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 SUNPOWER closes at or above $26.32 on 30-Jul-2021. Based on our risk-neutral analysis, there is a 50.19% 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.