52-Week High Alert: Trading today’s movement in JPMORGAN CHASE $JPM

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Quantchabot has detected a promising Bull Put Spread trade opportunity for JPMORGAN CHASE (JPM) for the 2-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

JPM was recently trading at $163.54 and has an implied volatility of 25.88% for this period. Based on an analysis of the options available for JPM expiring on 2-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $163.56-$179.37 at expiration. In this scenario, the average linear return for the trade would be 62.89%.

52 week high: JPMORGAN CHASE recently reached a new 52-week high at $164.50. JPM had traded in the range $82.40-$163.73 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 JPM maintains its current direction and does not revert back to pricing on the bearish side of $163.54 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 JPMORGAN CHASE closes at or above $162.05 on 2-Jul-2021. Based on our risk-neutral analysis, there is a 54.00% 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.