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Quantchabot has detected a promising Bull Put Spread trade opportunity for UNITEDHEALTH GROUP (UNH) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UNH was recently trading at $403.07 and has an implied volatility of 20.36% for this period. Based on an analysis of the options available for UNH expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $403.12-$433.47 at expiration. In this scenario, the average linear return for the trade would be 64.72%.
52 week high: UNITEDHEALTH GROUP recently reached a new 52-week high at $403.50. UNH had traded in the range $273.71-$402.16 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 UNH maintains its current direction and does not revert back to pricing on the bearish side of $403.07 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 UNITEDHEALTH GROUP closes at or above $401.55 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 52.15% 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.