Quantchabot has detected a promising Bull Put Spread trade opportunity for SUPERNUS PHARMACEUTICALS (SUPN) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SUPN was recently trading at $40.84 and has an implied volatility of 37.18% for this period. Based on an analysis of the options available for SUPN expiring on 17-Feb-2023, there is a 34.24% likelihood that the underlying will close within the analyzed range of $40.97-$45.04 at expiration. In this scenario, the average linear return for the trade would be 11.10%.
52 week high: SUPERNUS PHARMACEUTICALS recently reached a new 52-week high at $41.33. SUPN had traded in the range $24.95-$41.25 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 SUPN maintains its current direction and does not revert back to pricing on the bearish side of $40.84 on 17-Feb-2023. 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 SUPERNUS PHARMACEUTICALS closes at or above $40.50 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 54.83% 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.