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Quantchabot has detected a promising Bull Put Spread trade opportunity for ENTERPRISE PRODUCTS (EPD) for the 2-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EPD was recently trading at $24.21 and has an implied volatility of 23.65% for this period. Based on an analysis of the options available for EPD expiring on 2-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $24.21-$26.34 at expiration. In this scenario, the average linear return for the trade would be 53.14%.
52 week high: ENTERPRISE PRODUCTS recently reached a new 52-week high at $24.24. EPD had traded in the range $14.90-$23.89 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 EPD maintains its current direction and does not revert back to pricing on the bearish side of $24.21 on 2-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 ENTERPRISE PRODUCTS closes at or above $24.19 on 2-Jul-2021. Based on our risk-neutral analysis, there is a 50.45% 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.