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Quantchabot has detected a promising Bull Put Spread trade opportunity for AMBARELLA INC (AMBA) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMBA was recently trading at $149.01 and has an implied volatility of 46.01% for this period. Based on an analysis of the options available for AMBA expiring on 19-Nov-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $149.03-$181.05 at expiration. In this scenario, the average linear return for the trade would be 76.08%.
52 week high: AMBARELLA INC recently reached a new 52-week high at $151.32. AMBA had traded in the range $48.35-$149.95 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 AMBA maintains its current direction and does not revert back to pricing on the bearish side of $149.01 on 19-Nov-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 AMBARELLA INC closes at or above $148.10 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 51.29% 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.