Quantchabot has detected a promising Bull Put Spread trade opportunity for ARES MANAGEMENT LP (ARES) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ARES was recently trading at $105.99 and has an implied volatility of 22.70% for this period. Based on an analysis of the options available for ARES expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $105.85-$113.97 at expiration. In this scenario, the average linear return for the trade would be 25.00%.
52 week high: ARES MANAGEMENT LP recently reached a new 52-week high at $106.37. ARES had traded in the range $58.60-$106.02 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 ARES maintains its current direction and does not revert back to pricing on the bearish side of $105.99 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 ARES MANAGEMENT LP closes at or above $104.00 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 59.46% 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.