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Quantchabot has detected a promising Bull Put Spread trade opportunity for SUNPOWER (SPWR) for the 29-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SPWR was recently trading at $27.45 and has an implied volatility of 97.55% for this period. Based on an analysis of the options available for SPWR expiring on 29-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $27.45-$37.82 at expiration. In this scenario, the average linear return for the trade would be 85.35%.

Big 7.65% Change: After closing the last trading session at $25.50, SUNPOWER opened today at $25.51 and has reached a high of $27.45.

Trade approach: A movement as big as 7.65% is a significantly bullish indicator, so this trade is designed to be profitable if SPWR maintains its current direction and does not revert back to pricing on the bearish side of $27.45 on 29-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 SUNPOWER closes at or above $26.88 on 29-Jan-2021. Based on our risk-neutral analysis, there is a 52.63% 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.