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Quantchabot has detected a promising Bull Put Spread trade opportunity for ALPHABET INC CLASS A (GOOGL) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GOOGL was recently trading at $1,735.29 and has an implied volatility of 30.92% for this period. Based on an analysis of the options available for GOOGL expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $1,735.77-$1,991.95 at expiration. In this scenario, the average linear return for the trade would be 68.43%.

52 week high: ALPHABET INC CLASS A recently reached a new 52-week high at $1,737.75. GOOGL had traded in the range $1,008.87-$1,726.10 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 GOOGL maintains its current direction and does not revert back to pricing on the bearish side of $1,735.29 on 15-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 ALPHABET INC CLASS A closes at or above $1,728.30 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 51.25% 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.