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Quantchabot has detected a promising Bull Put Spread trade opportunity for KONTOOR BRANDS INC (KTB) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
KTB was recently trading at $54.00 and has an implied volatility of 45.32% for this period. Based on an analysis of the options available for KTB expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $54.00-$58.05 at expiration. In this scenario, the average linear return for the trade would be 38.50%.
Big 7.08% Change: After closing the last trading session at $50.43, KONTOOR BRANDS INC opened today at $52.68 and has reached a high of $54.23.
Trade approach: A movement as big as 7.08% is a significantly bullish indicator, so this trade is designed to be profitable if KTB maintains its current direction and does not revert back to pricing on the bearish side of $54.00 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 KONTOOR BRANDS INC closes at or above $53.50 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 55.14% 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.