52-Week High Alert: Trading today’s movement in WATERS $WAT

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

WAT was recently trading at $296.26 and has an implied volatility of 22.92% for this period. Based on an analysis of the options available for WAT expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $296.27-$307.33 at expiration. In this scenario, the average linear return for the trade would be 33.62%.

52 week high: WATERS recently reached a new 52-week high at $301.06. WAT had traded in the range $171.38-$299.06 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 WAT maintains its current direction and does not revert back to pricing on the bearish side of $296.26 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 WATERS closes at or above $294.40 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 56.85% 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.