Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Covered Put trade opportunity for KOHL'S (KSS) for the 28-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
KSS was recently trading at $45.81 and has an implied volatility of 37.55% for this period. Based on an analysis of the options available for KSS expiring on 28-Feb-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $39.10-$45.92 at expiration. In this scenario, the average linear return for the trade would be 12.04%.
Big -7.23% Change: After closing the last trading session at $49.38, KOHL'S opened today at $45.79 and has reached a low of $44.63.
Trade approach: A movement as big as -7.23% is a significantly bearish indicator, so this trade is designed to be profitable if KSS maintains its current direction and does not revert back to pricing on the bullish side of $45.81 on 28-Feb-2020. 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 KOHL'S closes at or below $46.36 on 28-Feb-2020. Based on our risk-neutral analysis, there is a 52.37% 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.