Big Gainer Alert: Trading today’s 11.5% move in HAVERTY FURNITURE $HVT

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Quantchabot has detected a promising Bull Put Spread trade opportunity for HAVERTY FURNITURE (HVT) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HVT was recently trading at $45.72 and has an implied volatility of 43.36% for this period. Based on an analysis of the options available for HVT expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $45.73-$53.80 at expiration. In this scenario, the average linear return for the trade would be 12.99%.

Big 11.51% Change: After closing the last trading session at $41.00, HAVERTY FURNITURE opened today at $42.82 and has reached a high of $45.95.

Trade approach: A movement as big as 11.51% is a significantly bullish indicator, so this trade is designed to be profitable if HVT maintains its current direction and does not revert back to pricing on the bearish side of $45.72 on 18-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 HAVERTY FURNITURE closes at or above $43.85 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 60.17% 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.