Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Put Spread trade opportunity for DAQO NEW ENERGY (DQ) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. DQ was recently trading at $97.88 and has an implied volatility of 109.45% for this period. Based on an analysis of the options available for DQ expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $97.89-$132.78 at expiration. In this scenario, the average linear return for the trade would be 74.81%. 52 week high: DAQO NEW ENERGY recently reached a new 52-week high at $98.35. DQ had traded in the range $8.32-$85.55 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 DQ maintains its current direction and does not revert back to pricing on the bearish side of $97.88 on 19-Feb-2021. 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 DAQO NEW ENERGY closes at or above $97.70 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 50.25% 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.