Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for MELCO RESORTS & ENTERTAINMENT LTD (MLCO) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MLCO was recently trading at $10.89 and has an implied volatility of 69.94% for this period. Based on an analysis of the options available for MLCO expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $10.89-$13.54 at expiration. In this scenario, the average linear return for the trade would be 42.33%.
Big 14.39% Change: After closing the last trading session at $9.52, MELCO RESORTS & ENTERTAINMENT LTD opened today at $10.47 and has reached a high of $11.05.
Trade approach: A movement as big as 14.39% is a significantly bullish indicator, so this trade is designed to be profitable if MLCO maintains its current direction and does not revert back to pricing on the bearish side of $10.89 on 18-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 MELCO RESORTS & ENTERTAINMENT LTD closes at or above $10.70 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 53.23% 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.