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Quantchabot has detected a promising Bull Put Spread trade opportunity for AVIS BUDGET GROUP (CAR) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CAR was recently trading at $145.43 and has an implied volatility of 91.17% for this period. Based on an analysis of the options available for CAR expiring on 15-Oct-2021, there is a 34.16% likelihood that the underlying will close within the analyzed range of $145.43-$156.43 at expiration. In this scenario, the average linear return for the trade would be 40.85%.
52 week high: AVIS BUDGET GROUP recently reached a new 52-week high at $154.14. CAR had traded in the range $28.20-$143.89 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 CAR maintains its current direction and does not revert back to pricing on the bearish side of $145.43 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 AVIS BUDGET GROUP closes at or above $143.55 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 57.09% 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.