Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for UNITED NATURAL FOODS (UNFI) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UNFI was recently trading at $19.72 and has an implied volatility of 70.31% for this period. Based on an analysis of the options available for UNFI expiring on 20-Nov-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $19.72-$24.62 at expiration. In this scenario, the average linear return for the trade would be 60.51%.
Big 8.47% Change: After closing the last trading session at $18.18, UNITED NATURAL FOODS opened today at $18.00 and has reached a high of $19.78.
Trade approach: A movement as big as 8.47% is a significantly bullish indicator, so this trade is designed to be profitable if UNFI maintains its current direction and does not revert back to pricing on the bearish side of $19.72 on 20-Nov-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 UNITED NATURAL FOODS closes at or above $19.05 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 56.22% 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.