52-Week High Alert: Trading today’s movement in ILLINOIS TOOL WORKS $ITW

Quantcha now offering unlimited commission-free options trading.

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

ITW was recently trading at $233.08 and has an implied volatility of 17.77% for this period. Based on an analysis of the options available for ITW expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $233.11-$248.34 at expiration. In this scenario, the average linear return for the trade would be 42.34%.

52 week high: ILLINOIS TOOL WORKS recently reached a new 52-week high at $233.31. ITW had traded in the range $148.66-$232.29 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 ITW maintains its current direction and does not revert back to pricing on the bearish side of $233.08 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 ILLINOIS TOOL WORKS closes at or above $232.75 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 50.98% 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.