Quantchabot has detected a new Bull Put Spread trade opportunity for CHINA YUCHAI (CYD) for the 18-Jul-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CYD was recently trading at $18.78 and has an implied volatility of 110.93% for this period. Based on an analysis of the options available for CYD expiring on 18-Jul-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $18.88-$27.70 at expiration. In this scenario, the average linear return for the trade would be 28.80%.
Big 9.44% Change: After closing the last trading session at $17.16, CHINA YUCHAI opened today at $18.08 and has reached a high of $18.92.
Trade approach: A movement as big as 9.44% is a significantly bullish indicator, so this trade is designed to be profitable if CYD maintains its current direction and does not revert back to pricing on the bearish side of $18.78 on 18-Jul-2025. 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 CHINA YUCHAI closes at or above $18.80 on 18-Jul-2025. Based on our risk-neutral analysis, there is a 50.44% 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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