52-Week High Alert: Trading today’s movement in FORTINET $FTNT

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Quantchabot has detected a promising Bull Put Spread trade opportunity for FORTINET (FTNT) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FTNT was recently trading at $212.91 and has an implied volatility of 31.63% for this period. Based on an analysis of the options available for FTNT expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $212.94-$241.39 at expiration. In this scenario, the average linear return for the trade would be 40.56%.

52 week high: FORTINET recently reached a new 52-week high at $212.94. FTNT had traded in the range $106.75-$212.67 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 FTNT maintains its current direction and does not revert back to pricing on the bearish side of $212.91 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 FORTINET closes at or above $212.00 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 51.41% 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.