52-Week High Alert: Trading today’s movement in TORONTO-DOMINION BANK $TD

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Call Spread trade opportunity for TORONTO-DOMINION BANK (TD) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TD was recently trading at $72.69 and has an implied volatility of 17.19% for this period. Based on an analysis of the options available for TD expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $72.69-$74.07 at expiration. In this scenario, the average linear return for the trade would be 13.64%.

52 week high: TORONTO-DOMINION BANK recently reached a new 52-week high at $72.75. TD had traded in the range $37.62-$71.84 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 TD maintains its current direction and does not revert back to pricing on the bearish side of $72.69 on 21-May-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 TORONTO-DOMINION BANK closes at or above $72.20 on 21-May-2021. Based on our risk-neutral analysis, there is a 64.08% 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.