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Quantchabot has detected a promising Bull Put Spread trade opportunity for FACTSET RESEARCH SYSTEMS (FDS) for the 17-Dec-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FDS was recently trading at $410.95 and has an implied volatility of 21.59% for this period. Based on an analysis of the options available for FDS expiring on 17-Dec-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $411.01-$450.33 at expiration. In this scenario, the average linear return for the trade would be 47.26%.
52 week high: FACTSET RESEARCH SYSTEMS recently reached a new 52-week high at $415.75. FDS had traded in the range $294.21-$409.71 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 FDS maintains its current direction and does not revert back to pricing on the bearish side of $410.95 on 17-Dec-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 FACTSET RESEARCH SYSTEMS closes at or above $409.50 on 17-Dec-2021. Based on our risk-neutral analysis, there is a 51.61% 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.