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Quantchabot has detected a promising Bull Put Spread trade opportunity for ALEXION PHARMACEUTICALS (ALXN) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ALXN was recently trading at $174.72 and has an implied volatility of 15.64% for this period. Based on an analysis of the options available for ALXN expiring on 18-Jun-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $174.74-$183.06 at expiration. In this scenario, the average linear return for the trade would be 36.80%.
52 week high: ALEXION PHARMACEUTICALS recently reached a new 52-week high at $174.80. ALXN had traded in the range $98.89-$173.86 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 ALXN maintains its current direction and does not revert back to pricing on the bearish side of $174.72 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 ALEXION PHARMACEUTICALS closes at or above $173.65 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 55.33% 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.