Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for WESTERN DIGITAL (WDC) for the 30-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WDC was recently trading at $72.42 and has an implied volatility of 49.07% for this period. Based on an analysis of the options available for WDC expiring on 30-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $72.42-$81.99 at expiration. In this scenario, the average linear return for the trade would be 76.54%.
52 week high: WESTERN DIGITAL recently reached a new 52-week high at $74.66. WDC had traded in the range $33.53-$72.98 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 WDC maintains its current direction and does not revert back to pricing on the bearish side of $72.42 on 30-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 WESTERN DIGITAL closes at or above $72.17 on 30-Apr-2021. Based on our risk-neutral analysis, there is a 51.11% 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.