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Quantchabot has detected a promising Bull Put Spread trade opportunity for BP (BP) for the 4-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BP was recently trading at $30.30 and has an implied volatility of 28.27% for this period. Based on an analysis of the options available for BP expiring on 4-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $30.31-$32.60 at expiration. In this scenario, the average linear return for the trade would be 64.09%.
52 week high: BP recently reached a new 52-week high at $30.34. BP had traded in the range $20.43-$30.29 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 BP maintains its current direction and does not revert back to pricing on the bearish side of $30.30 on 4-Feb-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 BP closes at or above $30.14 on 4-Feb-2022. Based on our risk-neutral analysis, there is a 53.00% 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.