Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for LUFAX HOLDING LTD (LU) for the 20-Aug-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. LU was recently trading at $8.73 and has an implied volatility of 58.06% for this period. Based on an analysis of the options available for LU expiring on 20-Aug-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.34-$8.73 at expiration. In this scenario, the average linear return for the trade would be 18.75%. 52 week low: LUFAX HOLDING LTD recently reached a new 52-week low at $8.63. LU had traded in the range $8.70-$20.17 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 LU maintains its current direction and does not revert back to pricing on the bullish side of $8.73 on 20-Aug-2021. 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 LUFAX HOLDING LTD closes at or below $8.87 on 20-Aug-2021. Based on our risk-neutral analysis, there is a 53.72% 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.