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Quantchabot has detected a promising Bull Put Spread trade opportunity for OWENS-CORNING (OC) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
OC was recently trading at $93.86 and has an implied volatility of 25.85% for this period. Based on an analysis of the options available for OC expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $93.86-$97.60 at expiration. In this scenario, the average linear return for the trade would be 31.21%.
52 week high: OWENS-CORNING recently reached a new 52-week high at $96.58. OC had traded in the range $35.97-$96.24 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 OC maintains its current direction and does not revert back to pricing on the bearish side of $93.86 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 OWENS-CORNING closes at or above $93.65 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 52.29% 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.