Quantchabot has detected a promising Bull Put Spread trade opportunity for JACKSON FINANCIAL INC (JXN) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
JXN was recently trading at $37.85 and has an implied volatility of 31.49% for this period. Based on an analysis of the options available for JXN expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $37.54-$42.31 at expiration. In this scenario, the average linear return for the trade would be 30.26%.
Big 9.30% Change: After closing the last trading session at $34.63, JACKSON FINANCIAL INC opened today at $37.50 and has reached a high of $38.25.
Trade approach: A movement as big as 9.30% is a significantly bullish indicator, so this trade is designed to be profitable if JXN maintains its current direction and does not revert back to pricing on the bearish side of $37.85 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 JACKSON FINANCIAL INC closes at or above $37.10 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.91% 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.