52-Week High Alert: Trading today’s movement in LENNAR $LEN

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Quantchabot has detected a promising Bull Call Spread trade opportunity for LENNAR (LEN) for the 18-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LEN was recently trading at $85.95 and has an implied volatility of 43.58% for this period. Based on an analysis of the options available for LEN expiring on 18-Dec-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $85.97-$103.09 at expiration. In this scenario, the average linear return for the trade would be 61.91%.

52 week high: LENNAR recently reached a new 52-week high at $86.80. LEN had traded in the range $25.42-$85.57 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 LEN maintains its current direction and does not revert back to pricing on the bearish side of $85.95 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 LENNAR closes at or above $85.80 on 18-Dec-2020. Based on our risk-neutral analysis, there is a 50.44% 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.