Quantcha now offering unlimited commission-free options trading.

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

ICE was recently trading at $109.57 and has an implied volatility of 23.24% for this period. Based on an analysis of the options available for ICE expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $109.29-$117.95 at expiration. In this scenario, the average linear return for the trade would be 55.02%.

52 week high: INTERCONTINENTALEXCHANGE recently reached a new 52-week high at $110.12. ICE had traded in the range $63.51-$108.04 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 ICE maintains its current direction and does not revert back to pricing on the bearish side of $109.57 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 INTERCONTINENTALEXCHANGE closes at or above $108.20 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 55.22% 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.