Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for UNITED PARCEL SERVICE (UPS) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UPS was recently trading at $210.80 and has an implied volatility of 23.59% for this period. Based on an analysis of the options available for UPS expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $210.85-$234.54 at expiration. In this scenario, the average linear return for the trade would be 76.53%.
52 week high: UNITED PARCEL SERVICE recently reached a new 52-week high at $211.44. UPS had traded in the range $88.85-$204.50 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 UPS maintains its current direction and does not revert back to pricing on the bearish side of $210.80 on 16-Jul-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 UNITED PARCEL SERVICE closes at or above $210.10 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 51.33% 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.