52-Week High Alert: Trading today’s movement in WALT DISNEY $DIS

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Quantchabot has detected a promising Bull Call Spread trade opportunity for WALT DISNEY (DIS) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DIS was recently trading at $193.56 and has an implied volatility of 34.64% for this period. Based on an analysis of the options available for DIS expiring on 16-Apr-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $193.59-$220.97 at expiration. In this scenario, the average linear return for the trade would be 79.85%.

52 week high: WALT DISNEY recently reached a new 52-week high at $194.02. DIS had traded in the range $79.07-$193.85 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 DIS maintains its current direction and does not revert back to pricing on the bearish side of $193.56 on 16-Apr-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 WALT DISNEY closes at or above $192.75 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 51.31% 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.