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Quantchabot has detected a promising Bull Put Spread trade opportunity for PARKER HANNIFIN (PH) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PH was recently trading at $286.90 and has an implied volatility of 29.72% for this period. Based on an analysis of the options available for PH expiring on 15-Jan-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $286.90-$293.73 at expiration. In this scenario, the average linear return for the trade would be 40.00%.
52 week high: PARKER HANNIFIN recently reached a new 52-week high at $289.11. PH had traded in the range $93.00-$286.37 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 PH maintains its current direction and does not revert back to pricing on the bearish side of $286.90 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 PARKER HANNIFIN closes at or above $286.55 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.08% 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.