Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for STANLEY BLACK & DECKER (SWK) for the 23-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SWK was recently trading at $203.40 and has an implied volatility of 23.62% for this period. Based on an analysis of the options available for SWK expiring on 23-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $203.41-$214.15 at expiration. In this scenario, the average linear return for the trade would be 47.00%.
52 week high: STANLEY BLACK & DECKER recently reached a new 52-week high at $204.03. SWK had traded in the range $97.64-$203.31 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 SWK maintains its current direction and does not revert back to pricing on the bearish side of $203.40 on 23-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 STANLEY BLACK & DECKER closes at or above $203.30 on 23-Apr-2021. Based on our risk-neutral analysis, there is a 50.44% 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.