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Quantchabot has detected a promising Bull Put Spread trade opportunity for EXTRA SPACE STORAGE (EXR) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EXR was recently trading at $129.49 and has an implied volatility of 25.09% for this period. Based on an analysis of the options available for EXR expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $128.51-$141.31 at expiration. In this scenario, the average linear return for the trade would be 16.64%.
Big 7.25% Change: After closing the last trading session at $120.74, EXTRA SPACE STORAGE opened today at $126.00 and has reached a high of $131.06.
Trade approach: A movement as big as 7.25% is a significantly bullish indicator, so this trade is designed to be profitable if EXR maintains its current direction and does not revert back to pricing on the bearish side of $129.49 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 EXTRA SPACE STORAGE closes at or above $127.05 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 54.79% 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.