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Quantchabot has detected a promising Bull Put Spread trade opportunity for APA CORP (APA) for the 29-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APA was recently trading at $20.00 and has an implied volatility of 55.28% for this period. Based on an analysis of the options available for APA expiring on 29-Oct-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $20.00-$24.35 at expiration. In this scenario, the average linear return for the trade would be 67.89%.
Big 7.01% Change: After closing the last trading session at $18.69, APA CORP opened today at $19.05 and has reached a high of $20.08.
Trade approach: A movement as big as 7.01% is a significantly bullish indicator, so this trade is designed to be profitable if APA maintains its current direction and does not revert back to pricing on the bearish side of $20.00 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 APA CORP closes at or above $19.87 on 29-Oct-2021. Based on our risk-neutral analysis, there is a 51.34% 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.