Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for ROYAL DUTCH SHELL (RDS.A) for the 24-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. RDS.A was recently trading at $36.43 and has an implied volatility of 62.99% for this period. Based on an analysis of the options available for RDS.A expiring on 24-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $28.94-$36.46 at expiration. In this scenario, the average linear return for the trade would be 12.28%. 52 week low: ROYAL DUTCH SHELL recently reached a new 52-week low at $36.41. RDS.A had traded in the range $41.67-$66.48 over the past year. Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if RDS.A maintains its current direction and does not revert back to pricing on the bullish side of $36.43 on 24-Apr-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit. Upside potential: Using this bearish strategy, the trade would be profitable if ROYAL DUTCH SHELL closes at or below $39.82 on 24-Apr-2020. Based on our risk-neutral analysis, there is a 64.83% 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.