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Quantchabot has detected a promising Bull Put Spread trade opportunity for F5 NETWORKS (FFIV) for the 22-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FFIV was recently trading at $200.12 and has an implied volatility of 23.08% for this period. Based on an analysis of the options available for FFIV expiring on 22-Jan-2021, there is a 34.16% likelihood that the underlying will close within the analyzed range of $200.12-$201.55 at expiration. In this scenario, the average linear return for the trade would be 25.00%.

52 week high: F5 NETWORKS recently reached a new 52-week high at $200.88. FFIV had traded in the range $79.78-$200.57 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 FFIV maintains its current direction and does not revert back to pricing on the bearish side of $200.12 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 F5 NETWORKS closes at or above $199.50 on 22-Jan-2021. Based on our risk-neutral analysis, there is a 66.83% 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.