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

APA was recently trading at $14.90 and has an implied volatility of 84.14% for this period. Based on an analysis of the options available for APA expiring on 22-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $14.90-$20.30 at expiration. In this scenario, the average linear return for the trade would be 91.59%.

Big 8.44% Change: After closing the last trading session at $13.74, APACHE opened today at $14.04 and has reached a high of $14.93.

Trade approach: A movement as big as 8.44% is a significantly bullish indicator, so this trade is designed to be profitable if APA maintains its current direction and does not revert back to pricing on the bearish side of $14.90 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 APACHE closes at or above $14.90 on 22-Jan-2021. Based on our risk-neutral analysis, there is a 50.03% 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.