52-Week High Alert: Trading today’s movement in SPARTANNASH COMPANY COMMON STO $SPTN

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Quantchabot has detected a promising Bull Put Spread trade opportunity for SPARTANNASH COMPANY COMMON STO (SPTN) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SPTN was recently trading at $17.43 and has an implied volatility of 64.90% for this period. Based on an analysis of the options available for SPTN expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $17.43-$20.15 at expiration. In this scenario, the average linear return for the trade would be 24.92%.

52 week high: SPARTANNASH COMPANY COMMON STO recently reached a new 52-week high at $17.46. SPTN had traded in the range $8.82-$17.35 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 SPTN maintains its current direction and does not revert back to pricing on the bearish side of $17.43 on 15-May-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 SPARTANNASH COMPANY COMMON STO closes at or above $17.00 on 15-May-2020. Based on our risk-neutral analysis, there is a 56.83% 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.