Quantchabot has detected a promising Bull Put Spread trade opportunity for SEATTLE GENETICS (SGEN) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SGEN was recently trading at $208.00 and has an implied volatility of 21.65% for this period. Based on an analysis of the options available for SGEN expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $209.76-$227.91 at expiration. In this scenario, the average linear return for the trade would be 12.56%.
52 week high: SEATTLE GENETICS recently reached a new 52-week high at $209.39. SGEN had traded in the range $116.08-$207.16 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 SGEN maintains its current direction and does not revert back to pricing on the bearish side of $208.00 on 20-Oct-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 SEATTLE GENETICS closes at or above $206.65 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 57.13% 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.