Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for DRIL-QUIP (DRQ) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. DRQ was recently trading at $22.77 and has an implied volatility of 74.45% for this period. Based on an analysis of the options available for DRQ expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $18.94-$22.77 at expiration. In this scenario, the average linear return for the trade would be 17.60%. 52 week low: DRIL-QUIP recently reached a new 52-week low at $22.25. DRQ had traded in the range $23.91-$55.45 over the past year. Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if DRQ maintains its current direction and does not revert back to pricing on the bullish side of $22.77 on 16-Oct-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit. Upside potential: Using this bearish strategy, the trade would be profitable if DRIL-QUIP closes at or below $23.02 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 52.34% 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.