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Quantchabot has detected a promising Bull Put Spread trade opportunity for TATA MOTORS (TTM) for the 12-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TTM was recently trading at $23.10 and has an implied volatility of 76.05% for this period. Based on an analysis of the options available for TTM expiring on 12-Feb-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $23.10-$25.10 at expiration. In this scenario, the average linear return for the trade would be 34.44%.

Big 7.24% Change: After closing the last trading session at $21.54, TATA MOTORS opened today at $22.87 and has reached a high of $23.31.

Trade approach: A movement as big as 7.24% is a significantly bullish indicator, so this trade is designed to be profitable if TTM maintains its current direction and does not revert back to pricing on the bearish side of $23.10 on 12-Feb-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 TATA MOTORS closes at or above $23.05 on 12-Feb-2021. Based on our risk-neutral analysis, there is a 51.05% 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.