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Quantchabot has detected a promising Bull Put Spread trade opportunity for FATE THERAPEUTICS INC. COMMON (FATE) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FATE was recently trading at $82.50 and has an implied volatility of 76.28% for this period. Based on an analysis of the options available for FATE expiring on 19-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $82.53-$116.43 at expiration. In this scenario, the average linear return for the trade would be 34.15%.

Big 35.71% Change: After closing the last trading session at $60.79, FATE THERAPEUTICS INC. COMMON opened today at $68.48 and has reached a high of $89.29.

Trade approach: A movement as big as 35.71% is a significantly bullish indicator, so this trade is designed to be profitable if FATE maintains its current direction and does not revert back to pricing on the bearish side of $82.50 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 FATE THERAPEUTICS INC. COMMON closes at or above $81.50 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 51.45% 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.