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Quantchabot has detected a promising Bull Call Spread trade opportunity for WORTHINGTON INDUSTRIES (WOR) for the 18-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WOR was recently trading at $48.35 and has an implied volatility of 48.23% for this period. Based on an analysis of the options available for WOR expiring on 18-Dec-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $48.11-$58.91 at expiration. In this scenario, the average linear return for the trade would be 62.02%.
52 week high: WORTHINGTON INDUSTRIES recently reached a new 52-week high at $48.55. WOR had traded in the range $19.28-$48.50 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 WOR maintains its current direction and does not revert back to pricing on the bearish side of $48.35 on 18-Dec-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 WORTHINGTON INDUSTRIES closes at or above $47.95 on 18-Dec-2020. Based on our risk-neutral analysis, there is a 50.67% 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.