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Quantchabot has detected a promising Bull Put Spread trade opportunity for TECK RESOURCES LTD (TECK) for the 22-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TECK was recently trading at $26.83 and has an implied volatility of 48.73% for this period. Based on an analysis of the options available for TECK expiring on 22-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $26.83-$31.36 at expiration. In this scenario, the average linear return for the trade would be 68.18%.
52 week high: TECK RESOURCES LTD recently reached a new 52-week high at $27.08. TECK had traded in the range $11.91-$26.72 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 TECK maintains its current direction and does not revert back to pricing on the bearish side of $26.83 on 22-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 TECK RESOURCES LTD closes at or above $26.65 on 22-Oct-2021. Based on our risk-neutral analysis, there is a 51.73% 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.