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Quantchabot has detected a promising Bull Put Spread trade opportunity for METLIFE (MET) for the 28-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MET was recently trading at $67.50 and has an implied volatility of 23.63% for this period. Based on an analysis of the options available for MET expiring on 28-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $67.50-$70.95 at expiration. In this scenario, the average linear return for the trade would be 49.19%.
52 week high: METLIFE recently reached a new 52-week high at $68.56. MET had traded in the range $47.69-$68.15 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 MET maintains its current direction and does not revert back to pricing on the bearish side of $67.50 on 28-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 METLIFE closes at or above $67.31 on 28-Jan-2022. Based on our risk-neutral analysis, there is a 52.27% 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.