Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Put Spread trade opportunity for RADIAN GROUP (RDN) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. RDN was recently trading at $15.97 and has an implied volatility of 56.56% for this period. Based on an analysis of the options available for RDN expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $15.85-$19.87 at expiration. In this scenario, the average linear return for the trade would be 54.73%. Big 7.91% Change: After closing the last trading session at $14.80, RADIAN GROUP opened today at $15.20 and has reached a high of $16.01. Trade approach: A movement as big as 7.91% is a significantly bullish indicator, so this trade is designed to be profitable if RDN maintains its current direction and does not revert back to pricing on the bearish side of $15.97 on 17-Jul-2020. 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 RADIAN GROUP closes at or above $15.80 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 50.55% 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.