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Quantchabot has detected a promising Bull Put Spread trade opportunity for TARGET (TGT) for the 14-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TGT was recently trading at $205.04 and has an implied volatility of 22.77% for this period. Based on an analysis of the options available for TGT expiring on 14-May-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $205.06-$220.97 at expiration. In this scenario, the average linear return for the trade would be 58.34%.
52 week high: TARGET recently reached a new 52-week high at $205.27. TGT had traded in the range $90.17-$201.96 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 TGT maintains its current direction and does not revert back to pricing on the bearish side of $205.04 on 14-May-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 TARGET closes at or above $204.80 on 14-May-2021. Based on our risk-neutral analysis, there is a 50.69% 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.