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Quantchabot has detected a promising Bull Put Spread trade opportunity for U.S. BANCORP (USB) for the 2-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
USB was recently trading at $62.05 and has an implied volatility of 27.02% for this period. Based on an analysis of the options available for USB expiring on 2-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $62.06-$68.26 at expiration. In this scenario, the average linear return for the trade would be 63.69%.
52 week high: U.S. BANCORP recently reached a new 52-week high at $62.47. USB had traded in the range $31.81-$62.27 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 USB maintains its current direction and does not revert back to pricing on the bearish side of $62.05 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 U.S. BANCORP closes at or above $62.01 on 2-Jul-2021. Based on our risk-neutral analysis, there is a 50.32% 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.