Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for DOLLAR TREE STORES (DLTR) for the 22-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DLTR was recently trading at $80.57 and has an implied volatility of 39.74% for this period. Based on an analysis of the options available for DLTR expiring on 22-May-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $80.60-$89.49 at expiration. In this scenario, the average linear return for the trade would be 19.80%.
Big 8.09% Change: After closing the last trading session at $74.54, DOLLAR TREE STORES opened today at $75.29 and has reached a high of $80.60.
Trade approach: A movement as big as 8.09% is a significantly bullish indicator, so this trade is designed to be profitable if DLTR maintains its current direction and does not revert back to pricing on the bearish side of $80.57 on 22-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 DOLLAR TREE STORES closes at or above $79.65 on 22-May-2020. Based on our risk-neutral analysis, there is a 54.50% 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.