52-Week Low Alert: Trading today’s movement in LUFAX HOLDING LTD $LU

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Quantchabot has detected a promising Covered Put trade opportunity for LUFAX HOLDING LTD (LU) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LU was recently trading at $6.70 and has an implied volatility of 61.49% for this period. Based on an analysis of the options available for LU expiring on 19-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $5.51-$6.70 at expiration. In this scenario, the average linear return for the trade would be 10.42%.

52 week low: LUFAX HOLDING LTD recently reached a new 52-week low at $6.65. LU had traded in the range $6.86-$20.17 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if LU maintains its current direction and does not revert back to pricing on the bullish side of $6.70 on 19-Nov-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if LUFAX HOLDING LTD closes at or below $7.74 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 77.25% 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.