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Quantchabot has detected a promising Bull Put Spread trade opportunity for NORDSON (NDSN) for the 18-Jan-2019 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NDSN was recently trading at $120.79 and has an implied volatility of 27.59% for this period. Based on an analysis of the options available for NDSN expiring on 18-Jan-2019, there is a 34.14% likelihood that the underlying will close within the analyzed range of $120.55-$134.01 at expiration. In this scenario, the average linear return for the trade would be 24.65%.

Big 7.78% Change: After closing the last trading session at $112.07, NORDSON opened today at $118.57 and has reached a high of $121.10.

Trade approach: A movement as big as 7.78% is a significantly bullish indicator, so this trade is designed to be profitable if NDSN maintains its current direction and does not revert back to pricing on the bearish side of $120.79 on 18-Jan-2019. 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 NORDSON closes at or above $120.00 on 18-Jan-2019. Based on our risk-neutral analysis, there is a 51.72% 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.