Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Put Spread trade opportunity for CHINA YUCHAI (CYD) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CYD was recently trading at $17.45 and has an implied volatility of 42.98% for this period. Based on an analysis of the options available for CYD expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $17.45-$20.02 at expiration. In this scenario, the average linear return for the trade would be 35.09%. 52 week high: CHINA YUCHAI recently reached a new 52-week high at $17.46. CYD had traded in the range $7.77-$17.00 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 CYD maintains its current direction and does not revert back to pricing on the bearish side of $17.45 on 16-Oct-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 CHINA YUCHAI closes at or above $16.85 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 60.09% 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.