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Quantchabot has detected a promising Bull Put Spread trade opportunity for TATA MOTORS (TTM) for the 22-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TTM was recently trading at $25.49 and has an implied volatility of 45.78% for this period. Based on an analysis of the options available for TTM expiring on 22-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $25.49-$28.00 at expiration. In this scenario, the average linear return for the trade would be 33.41%.
Big 14.10% Change: After closing the last trading session at $22.34, TATA MOTORS opened today at $24.62 and has reached a high of $25.56.
Trade approach: A movement as big as 14.10% is a significantly bullish indicator, so this trade is designed to be profitable if TTM maintains its current direction and does not revert back to pricing on the bearish side of $25.49 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 TATA MOTORS closes at or above $25.45 on 22-Oct-2021. Based on our risk-neutral analysis, there is a 50.68% 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.