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Quantchabot has detected a promising Bull Put Spread trade opportunity for NATIONAL OILWELL VARCO (NOV) for the 22-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NOV was recently trading at $14.39 and has an implied volatility of 64.34% for this period. Based on an analysis of the options available for NOV expiring on 22-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $14.39-$18.23 at expiration. In this scenario, the average linear return for the trade would be 68.70%.

Big 7.15% Change: After closing the last trading session at $13.43, NATIONAL OILWELL VARCO opened today at $13.78 and has reached a high of $14.39.

Trade approach: A movement as big as 7.15% is a significantly bullish indicator, so this trade is designed to be profitable if NOV maintains its current direction and does not revert back to pricing on the bearish side of $14.39 on 22-Jan-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 NATIONAL OILWELL VARCO closes at or above $14.35 on 22-Jan-2021. Based on our risk-neutral analysis, there is a 50.50% 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.