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Quantchabot has detected a promising Bull Put Spread trade opportunity for PALO ALTO NETWORKS (PANW) for the 29-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PANW was recently trading at $465.89 and has an implied volatility of 26.64% for this period. Based on an analysis of the options available for PANW expiring on 29-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $465.94-$512.35 at expiration. In this scenario, the average linear return for the trade would be 52.55%.
52 week high: PALO ALTO NETWORKS recently reached a new 52-week high at $474.00. PANW had traded in the range $219.34-$470.05 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 PANW maintains its current direction and does not revert back to pricing on the bearish side of $465.89 on 29-Oct-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 PALO ALTO NETWORKS closes at or above $464.50 on 29-Oct-2021. Based on our risk-neutral analysis, there is a 51.30% 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.