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Quantchabot has detected a promising Bull Put Spread trade opportunity for ETSY INC. COMMON STOCK (ETSY) for the 26-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ETSY was recently trading at $213.48 and has an implied volatility of 68.11% for this period. Based on an analysis of the options available for ETSY expiring on 26-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $213.51-$269.93 at expiration. In this scenario, the average linear return for the trade would be 97.47%.
52 week high: ETSY INC. COMMON STOCK recently reached a new 52-week high at $221.12. ETSY had traded in the range $29.95-$211.85 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 ETSY maintains its current direction and does not revert back to pricing on the bearish side of $213.48 on 26-Feb-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 ETSY INC. COMMON STOCK closes at or above $213.10 on 26-Feb-2021. Based on our risk-neutral analysis, there is a 50.33% 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.