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Quantchabot has detected a promising Bull Put Spread trade opportunity for AMERIPRISE FINANCIAL (AMP) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMP was recently trading at $323.65 and has an implied volatility of 25.66% for this period. Based on an analysis of the options available for AMP expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $323.66-$337.86 at expiration. In this scenario, the average linear return for the trade would be 40.35%.
52 week high: AMERIPRISE FINANCIAL recently reached a new 52-week high at $323.93. AMP had traded in the range $196.77-$323.35 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 AMP maintains its current direction and does not revert back to pricing on the bearish side of $323.65 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 AMERIPRISE FINANCIAL closes at or above $323.05 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 51.75% 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.