52-Week High Alert: Trading today’s movement in WASTE MANAGEMENT $WM

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Quantchabot has detected a promising Bull Put Spread trade opportunity for WASTE MANAGEMENT (WM) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WM was recently trading at $140.86 and has an implied volatility of 17.09% for this period. Based on an analysis of the options available for WM expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $140.89-$152.12 at expiration. In this scenario, the average linear return for the trade would be 44.93%.

52 week high: WASTE MANAGEMENT recently reached a new 52-week high at $140.96. WM had traded in the range $94.13-$138.56 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 WM maintains its current direction and does not revert back to pricing on the bearish side of $140.86 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 WASTE MANAGEMENT closes at or above $138.45 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 59.02% 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.