52-Week High Alert: Trading today’s movement in CIGNA $CI

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

CI was recently trading at $222.69 and has an implied volatility of 30.47% for this period. Based on an analysis of the options available for CI expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $223.34-$253.24 at expiration. In this scenario, the average linear return for the trade would be 58.82%.

52 week high: CIGNA recently reached a new 52-week high at $224.00. CI had traded in the range $141.95-$216.18 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 CI maintains its current direction and does not revert back to pricing on the bearish side of $222.69 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 CIGNA closes at or above $222.00 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.91% 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.