52-Week High Alert: Trading today’s movement in APPLIED MATERIALS $AMAT

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Put Spread trade opportunity for APPLIED MATERIALS (AMAT) for the 11-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AMAT was recently trading at $165.18 and has an implied volatility of 36.38% for this period. Based on an analysis of the options available for AMAT expiring on 11-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $165.19-$183.13 at expiration. In this scenario, the average linear return for the trade would be 53.41%.

52 week high: APPLIED MATERIALS recently reached a new 52-week high at $166.53. AMAT had traded in the range $96.07-$163.02 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 AMAT maintains its current direction and does not revert back to pricing on the bearish side of $165.18 on 11-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 APPLIED MATERIALS closes at or above $164.25 on 11-Feb-2022. Based on our risk-neutral analysis, there is a 52.19% 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.