52-Week High Alert: Trading today’s movement in RH $RH

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Quantchabot has detected a promising Bull Call Spread trade opportunity for RH (RH) for the 4-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RH was recently trading at $704.61 and has an implied volatility of 53.64% for this period. Based on an analysis of the options available for RH expiring on 4-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $704.69-$838.53 at expiration. In this scenario, the average linear return for the trade would be 57.93%.

52 week high: RH recently reached a new 52-week high at $705.84. RH had traded in the range $129.11-$689.85 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 RH maintains its current direction and does not revert back to pricing on the bearish side of $704.61 on 4-Jun-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 RH closes at or above $704.40 on 4-Jun-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.