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Quantchabot has detected a promising Bull Put Spread trade opportunity for STRYKER (SYK) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SYK was recently trading at $249.66 and has an implied volatility of 18.94% for this period. Based on an analysis of the options available for SYK expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $249.67-$256.91 at expiration. In this scenario, the average linear return for the trade would be 31.43%.
52 week high: STRYKER recently reached a new 52-week high at $250.18. SYK had traded in the range $164.65-$250.02 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 SYK maintains its current direction and does not revert back to pricing on the bearish side of $249.66 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 STRYKER closes at or above $247.60 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 61.43% 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.