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Quantchabot has detected a promising Bull Put Spread trade opportunity for DECKERS OUTDOOR CORP (DECK) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DECK was recently trading at $181.15 and has an implied volatility of 46.44% for this period. Based on an analysis of the options available for DECK expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $181.20-$217.48 at expiration. In this scenario, the average linear return for the trade would be 46.11%.
Big 7.81% Change: After closing the last trading session at $168.03, DECKERS OUTDOOR CORP opened today at $178.82 and has reached a high of $189.61.
Trade approach: A movement as big as 7.81% is a significantly bullish indicator, so this trade is designed to be profitable if DECK maintains its current direction and does not revert back to pricing on the bearish side of $181.15 on 17-Jul-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 DECKERS OUTDOOR CORP closes at or above $178.50 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 53.28% 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.