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Quantchabot has detected a promising Bull Put Spread trade opportunity for SCHLUMBERGER (SLB) for the 31-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SLB was recently trading at $19.40 and has an implied volatility of 49.19% for this period. Based on an analysis of the options available for SLB expiring on 31-Dec-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $19.27-$22.92 at expiration. In this scenario, the average linear return for the trade would be 67.14%.

Big 7.78% Change: After closing the last trading session at $18.00, SCHLUMBERGER opened today at $18.89 and has reached a high of $19.44.

Trade approach: A movement as big as 7.78% is a significantly bullish indicator, so this trade is designed to be profitable if SLB maintains its current direction and does not revert back to pricing on the bearish side of $19.40 on 31-Dec-2020. 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 SCHLUMBERGER closes at or above $19.14 on 31-Dec-2020. Based on our risk-neutral analysis, there is a 51.60% 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.