Quantchabot has detected a promising Bull Put Spread trade opportunity for BETTERWARE DE MEXICO SA DE CV (BWMX) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BWMX was recently trading at $16.27 and has an implied volatility of 49.37% for this period. Based on an analysis of the options available for BWMX expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $16.41-$19.83 at expiration. In this scenario, the average linear return for the trade would be 32.80%.
Big 8.83% Change: After closing the last trading session at $14.95, BETTERWARE DE MEXICO SA DE CV opened today at $16.72 and has reached a high of $17.30.
Trade approach: A movement as big as 8.83% is a significantly bullish indicator, so this trade is designed to be profitable if BWMX maintains its current direction and does not revert back to pricing on the bearish side of $16.27 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 BETTERWARE DE MEXICO SA DE CV closes at or above $16.10 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.98% 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.
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