Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for WILLIAMS COMPANIES (WMB) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WMB was recently trading at $26.30 and has an implied volatility of 25.75% for this period. Based on an analysis of the options available for WMB expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $25.89-$28.75 at expiration. In this scenario, the average linear return for the trade would be 42.42%.
52 week high: WILLIAMS COMPANIES recently reached a new 52-week high at $26.34. WMB had traded in the range $17.48-$25.91 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 WMB maintains its current direction and does not revert back to pricing on the bearish side of $26.30 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 WILLIAMS COMPANIES closes at or above $25.70 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 52.87% 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.