Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for DOVER CORP (DOV) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DOV was recently trading at $149.95 and has an implied volatility of 20.04% for this period. Based on an analysis of the options available for DOV expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $149.97-$161.55 at expiration. In this scenario, the average linear return for the trade would be 44.91%.
52 week high: DOVER CORP recently reached a new 52-week high at $150.63. DOV had traded in the range $79.87-$149.40 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 DOV maintains its current direction and does not revert back to pricing on the bearish side of $149.95 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 DOVER CORP closes at or above $149.45 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 51.87% 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.