Quantcha now offering unlimited commission-free options trading.

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

GM was recently trading at $41.99 and has an implied volatility of 43.02% for this period. Based on an analysis of the options available for GM expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $42.00-$50.02 at expiration. In this scenario, the average linear return for the trade would be 73.91%.

52 week high: GENERAL MOTORS recently reached a new 52-week high at $42.12. GM had traded in the range $14.32-$41.77 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 GM maintains its current direction and does not revert back to pricing on the bearish side of $41.99 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 GENERAL MOTORS closes at or above $41.15 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 54.65% 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.