52-Week High Alert: Trading today’s movement in W.W. GRAINGER $GWW

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Quantchabot has detected a promising Bull Call Spread trade opportunity for W.W. GRAINGER (GWW) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GWW was recently trading at $411.32 and has an implied volatility of 27.33% for this period. Based on an analysis of the options available for GWW expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $411.42-$459.70 at expiration. In this scenario, the average linear return for the trade would be 48.07%.

52 week high: W.W. GRAINGER recently reached a new 52-week high at $414.97. GWW had traded in the range $200.61-$411.87 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 GWW maintains its current direction and does not revert back to pricing on the bearish side of $411.32 on 15-Jan-2021. 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 W.W. GRAINGER closes at or above $409.60 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 51.59% 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.