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Quantchabot has detected a promising Bull Put Spread trade opportunity for OLLIES BARGAIN OUTLET HOLDINGS INC. COMMON STOCK (OLLI) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
OLLI was recently trading at $68.49 and has an implied volatility of 52.00% for this period. Based on an analysis of the options available for OLLI expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $68.51-$76.97 at expiration. In this scenario, the average linear return for the trade would be 44.17%.
Big 10.31% Change: After closing the last trading session at $62.09, OLLIES BARGAIN OUTLET HOLDINGS INC. COMMON STOCK opened today at $62.73 and has reached a high of $68.80.
Trade approach: A movement as big as 10.31% is a significantly bullish indicator, so this trade is designed to be profitable if OLLI maintains its current direction and does not revert back to pricing on the bearish side of $68.49 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 OLLIES BARGAIN OUTLET HOLDINGS INC. COMMON STOCK closes at or above $68.35 on 15-May-2020. Based on our risk-neutral analysis, there is a 50.79% 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.