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Quantchabot has detected a promising Bull Put Spread trade opportunity for SIGNATURE BANK (SBNY) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SBNY was recently trading at $269.41 and has an implied volatility of 35.20% for this period. Based on an analysis of the options available for SBNY expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $269.43-$299.17 at expiration. In this scenario, the average linear return for the trade would be 37.53%.
52 week high: SIGNATURE BANK recently reached a new 52-week high at $270.23. SBNY had traded in the range $71.44-$269.83 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 SBNY maintains its current direction and does not revert back to pricing on the bearish side of $269.41 on 15-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 SIGNATURE BANK closes at or above $267.40 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 52.88% 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.