Quantchabot has detected a new Bull Put Spread trade opportunity for BRITISH AMERICAN TOBACCO (BTI) for the 15-Aug-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BTI was recently trading at $55.53 and has an implied volatility of 23.28% for this period. Based on an analysis of the options available for BTI expiring on 15-Aug-2025, there is a 34.30% likelihood that the underlying will close within the analyzed range of $55.61-$57.97 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
52 week high: BRITISH AMERICAN TOBACCO recently reached a new 52-week high at $55.95. BTI had traded in the range $34.12-$54.91 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 BTI maintains its current direction and does not revert back to pricing on the bearish side of $55.53 on 15-Aug-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 BRITISH AMERICAN TOBACCO closes at or above $54.50 on 15-Aug-2025. Based on our risk-neutral analysis, there is a 68.74% 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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