Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for AMERISOURCEBERGEN (ABC) for the 28-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ABC was recently trading at $134.78 and has an implied volatility of 21.45% for this period. Based on an analysis of the options available for ABC expiring on 28-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $134.80-$143.22 at expiration. In this scenario, the average linear return for the trade would be 35.02%.
52 week high: AMERISOURCEBERGEN recently reached a new 52-week high at $135.26. ABC had traded in the range $94.89-$132.85 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 ABC maintains its current direction and does not revert back to pricing on the bearish side of $134.78 on 28-Jan-2022. 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 AMERISOURCEBERGEN closes at or above $133.70 on 28-Jan-2022. Based on our risk-neutral analysis, there is a 55.36% 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.