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Quantchabot has detected a promising Bull Put Spread trade opportunity for NEW FORTRESS ENERGY LLC (NFE) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NFE was recently trading at $33.69 and has an implied volatility of 63.25% for this period. Based on an analysis of the options available for NFE expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $33.70-$40.43 at expiration. In this scenario, the average linear return for the trade would be 46.48%.

Big 7.30% Change: After closing the last trading session at $31.40, NEW FORTRESS ENERGY LLC opened today at $31.46 and has reached a high of $33.79.

Trade approach: A movement as big as 7.30% is a significantly bullish indicator, so this trade is designed to be profitable if NFE maintains its current direction and does not revert back to pricing on the bearish side of $33.69 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 bullish strategy, the trade would be profitable if NEW FORTRESS ENERGY LLC closes at or above $33.30 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 52.58% 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.