52-Week High Alert: Trading today’s movement in FORD MOTOR $F

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Quantchabot has detected a promising Bull Put Spread trade opportunity for FORD MOTOR (F) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

F was recently trading at $20.12 and has an implied volatility of 44.84% for this period. Based on an analysis of the options available for F expiring on 21-Jan-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $20.13-$24.12 at expiration. In this scenario, the average linear return for the trade would be 83.82%.

52 week high: FORD MOTOR recently reached a new 52-week high at $20.53. F had traded in the range $8.43-$20.51 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 F maintains its current direction and does not revert back to pricing on the bearish side of $20.12 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 FORD MOTOR closes at or above $20.02 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 51.19% 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.