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Quantchabot has detected a promising Bull Put Spread trade opportunity for CORELOGIC (CLGX) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CLGX was recently trading at $78.75 and has an implied volatility of 28.41% for this period. Based on an analysis of the options available for CLGX expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $78.44-$87.78 at expiration. In this scenario, the average linear return for the trade would be 11.10%.
52 week high: CORELOGIC recently reached a new 52-week high at $79.15. CLGX had traded in the range $24.69-$79.07 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 CLGX maintains its current direction and does not revert back to pricing on the bearish side of $78.75 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 CORELOGIC closes at or above $77.85 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.67% 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.