52-Week High Alert: Trading today’s movement in UNITED TECHNOLOGIES $UTX

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Quantchabot has detected a promising Bull Call Spread trade opportunity for UNITED TECHNOLOGIES (UTX) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

UTX was recently trading at $155.99 and has an implied volatility of 16.77% for this period. Based on an analysis of the options available for UTX expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $156.50-$169.57 at expiration. In this scenario, the average linear return for the trade would be 58.77%.

52 week high: UNITED TECHNOLOGIES recently reached a new 52-week high at $156.74. UTX had traded in the range $118.99-$155.53 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 UTX maintains its current direction and does not revert back to pricing on the bearish side of $155.99 on 17-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 bullish strategy, the trade would be profitable if UNITED TECHNOLOGIES closes at or above $155.94 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.79% 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.