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Quantchabot has detected a promising Bull Put Spread trade opportunity for PROGRESSIVE (PGR) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PGR was recently trading at $101.94 and has an implied volatility of 19.89% for this period. Based on an analysis of the options available for PGR expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $101.96-$109.69 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
52 week high: PROGRESSIVE recently reached a new 52-week high at $102.24. PGR had traded in the range $71.25-$102.05 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 PGR maintains its current direction and does not revert back to pricing on the bearish side of $101.94 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 PROGRESSIVE closes at or above $99.50 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 63.05% 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.