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Quantchabot has detected a promising Bull Put Spread trade opportunity for UNIVERSAL DISPLAY CORPORATION (OLED) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

OLED was recently trading at $249.35 and has an implied volatility of 49.41% for this period. Based on an analysis of the options available for OLED expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $249.38-$290.79 at expiration. In this scenario, the average linear return for the trade would be 68.24%.

52 week high: UNIVERSAL DISPLAY CORPORATION recently reached a new 52-week high at $257.54. OLED had traded in the range $105.11-$249.99 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 OLED maintains its current direction and does not revert back to pricing on the bearish side of $249.35 on 19-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 UNIVERSAL DISPLAY CORPORATION closes at or above $246.80 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 52.70% 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.