The automated Quantcha Trade Ideas Service has detected a promising Bull Put Spread trade opportunity for CONOCOPHILLIPS (COP) for the 16-Feb-2018 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

COP was recently trading at $56.76 and has an implied volatility of 22.05% for this period. Based on an analysis of the options available for COP expiring on 16-Feb-2018, there is a 34.14% likelihood that the underlying will close within the analyzed range of $57.07-$61.86 at expiration. In this scenario, the average linear return for the trade would be 73.08%.

52 week high: CONOCOPHILLIPS recently reached a new 52-week high at $56.79. COP had traded in the range $42.27-$56.37 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if COP maintains its current direction and does not revert back to pricing on the bearish side of $56.76 on 16-Feb-2018. 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 CONOCOPHILLIPS closes at or above $56.43 on 16-Feb-2018. Based on our risk-neutral analysis, there is a 55.58% 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.