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Quantchabot has detected a promising Bull Put Spread trade opportunity for WILLIAMS-SONOMA (WSM) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WSM was recently trading at $63.48 and has an implied volatility of 49.21% for this period. Based on an analysis of the options available for WSM expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $63.50-$70.89 at expiration. In this scenario, the average linear return for the trade would be 52.56%.
Big 9.49% Change: After closing the last trading session at $57.98, WILLIAMS-SONOMA opened today at $58.85 and has reached a high of $63.86.
Trade approach: A movement as big as 9.49% is a significantly bullish indicator, so this trade is designed to be profitable if WSM maintains its current direction and does not revert back to pricing on the bearish side of $63.48 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 WILLIAMS-SONOMA closes at or above $63.15 on 15-May-2020. Based on our risk-neutral analysis, there is a 51.98% 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.