52-Week High Alert: Trading today’s movement in ETSY INC. COMMON STOCK $ETSY

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Quantchabot has detected a promising Bull Put Spread trade opportunity for ETSY INC. COMMON STOCK (ETSY) for the 31-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ETSY was recently trading at $116.35 and has an implied volatility of 34.97% for this period. Based on an analysis of the options available for ETSY expiring on 31-Jul-2020, there is a 34.26% likelihood that the underlying will close within the analyzed range of $116.35-$117.58 at expiration. In this scenario, the average linear return for the trade would be 36.46%.

52 week high: ETSY INC. COMMON STOCK recently reached a new 52-week high at $117.82. ETSY had traded in the range $29.95-$115.50 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 ETSY maintains its current direction and does not revert back to pricing on the bearish side of $116.35 on 31-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 ETSY INC. COMMON STOCK closes at or above $116.32 on 31-Jul-2020. Based on our risk-neutral analysis, there is a 50.99% 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.