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Quantchabot has detected a promising Bull Put Spread trade opportunity for CDW CORPORATION COMMON STOCK (CDW) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CDW was recently trading at $173.28 and has an implied volatility of 18.74% for this period. Based on an analysis of the options available for CDW expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $173.28-$178.28 at expiration. In this scenario, the average linear return for the trade would be 19.86%.
52 week high: CDW CORPORATION COMMON STOCK recently reached a new 52-week high at $176.33. CDW had traded in the range $93.75-$172.79 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 CDW maintains its current direction and does not revert back to pricing on the bearish side of $173.28 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 CDW CORPORATION COMMON STOCK closes at or above $173.05 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 51.90% 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.