Quantchabot has detected a promising Bull Put Spread trade opportunity for ENI (E) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
E was recently trading at $32.29 and has an implied volatility of 32.27% for this period. Based on an analysis of the options available for E expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $32.12-$35.72 at expiration. In this scenario, the average linear return for the trade would be 14.33%.
52 week high: ENI recently reached a new 52-week high at $32.37. E had traded in the range $20.38-$32.21 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 E maintains its current direction and does not revert back to pricing on the bearish side of $32.29 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 ENI closes at or above $31.85 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.13% 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.