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Quantchabot has detected a promising Bull Put Spread trade opportunity for ALUMINUM CORPORATION (ACH) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ACH was recently trading at $15.23 and has an implied volatility of 53.69% for this period. Based on an analysis of the options available for ACH expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $15.23-$16.66 at expiration. In this scenario, the average linear return for the trade would be 17.65%.
Big 7.03% Change: After closing the last trading session at $14.23, ALUMINUM CORPORATION opened today at $15.03 and has reached a high of $15.32.
Trade approach: A movement as big as 7.03% is a significantly bullish indicator, so this trade is designed to be profitable if ACH maintains its current direction and does not revert back to pricing on the bearish side of $15.23 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 ALUMINUM CORPORATION closes at or above $14.85 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 61.06% 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.