Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for WERNER ENTERPRISES (WERN) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WERN was recently trading at $43.01 and has an implied volatility of 34.42% for this period. Based on an analysis of the options available for WERN expiring on 19-Jun-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $43.04-$48.96 at expiration. In this scenario, the average linear return for the trade would be 22.21%.
52 week high: WERNER ENTERPRISES recently reached a new 52-week high at $44.97. WERN had traded in the range $27.27-$40.49 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 WERN maintains its current direction and does not revert back to pricing on the bearish side of $43.01 on 19-Jun-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 WERNER ENTERPRISES closes at or above $42.85 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 51.34% 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.