Big Gainer Alert: Trading today’s 7.4% move in TJX COMPANIES $TJX

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

TJX was recently trading at $52.70 and has an implied volatility of 40.93% for this period. Based on an analysis of the options available for TJX expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $52.71-$57.47 at expiration. In this scenario, the average linear return for the trade would be 42.86%.

Big 7.36% Change: After closing the last trading session at $49.09, TJX COMPANIES opened today at $52.24 and has reached a high of $52.81.

Trade approach: A movement as big as 7.36% is a significantly bullish indicator, so this trade is designed to be profitable if TJX maintains its current direction and does not revert back to pricing on the bearish side of $52.70 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 TJX COMPANIES closes at or above $51.75 on 15-May-2020. Based on our risk-neutral analysis, there is a 58.45% 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.