52-Week High Alert: Trading today’s movement in CANADIAN IMP BK OF CMRC $CM

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Quantchabot has detected a promising Bull Put Spread trade opportunity for CANADIAN IMP BK OF CMRC (CM) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CM was recently trading at $102.50 and has an implied volatility of 12.03% for this period. Based on an analysis of the options available for CM expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $102.51-$105.81 at expiration. In this scenario, the average linear return for the trade would be 19.08%.

52 week high: CANADIAN IMP BK OF CMRC recently reached a new 52-week high at $102.84. CM had traded in the range $54.94-$102.20 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 CM maintains its current direction and does not revert back to pricing on the bearish side of $102.50 on 21-May-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 CANADIAN IMP BK OF CMRC closes at or above $102.50 on 21-May-2021. Based on our risk-neutral analysis, there is a 50.10% 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.