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Quantchabot has detected a promising Bull Put Spread trade opportunity for ANTERO RESOURCES CORP (AR) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AR was recently trading at $17.27 and has an implied volatility of 68.60% for this period. Based on an analysis of the options available for AR expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $17.27-$21.05 at expiration. In this scenario, the average linear return for the trade would be 65.66%.
Big 7.37% Change: After closing the last trading session at $16.08, ANTERO RESOURCES CORP opened today at $16.74 and has reached a high of $17.31.
Trade approach: A movement as big as 7.37% is a significantly bullish indicator, so this trade is designed to be profitable if AR maintains its current direction and does not revert back to pricing on the bearish side of $17.27 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 ANTERO RESOURCES CORP closes at or above $17.15 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 51.36% 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.