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Quantchabot has detected a promising Bull Put Spread trade opportunity for TE CONNECTIVITY (TEL) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TEL was recently trading at $160.85 and has an implied volatility of 23.31% for this period. Based on an analysis of the options available for TEL expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $160.38-$178.04 at expiration. In this scenario, the average linear return for the trade would be 38.89%.
52 week high: TE CONNECTIVITY recently reached a new 52-week high at $161.36. TEL had traded in the range $105.59-$159.10 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 TEL maintains its current direction and does not revert back to pricing on the bearish side of $160.85 on 21-Jan-2022. 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 TE CONNECTIVITY closes at or above $157.20 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 57.60% 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.