52-Week High Alert: Trading today’s movement in TARGET $TGT

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

TGT was recently trading at $218.65 and has an implied volatility of 22.88% for this period. Based on an analysis of the options available for TGT expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $218.68-$239.45 at expiration. In this scenario, the average linear return for the trade would be 62.97%.

52 week high: TARGET recently reached a new 52-week high at $220.49. TGT had traded in the range $114.23-$217.39 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 TGT maintains its current direction and does not revert back to pricing on the bearish side of $218.65 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 TARGET closes at or above $216.10 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 55.21% 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.