Big Gainer Alert: Trading today’s 7.9% move in RH $RH

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Quantchabot has detected a promising Bull Put Spread trade opportunity for RH (RH) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RH was recently trading at $725.76 and has an implied volatility of 40.92% for this period. Based on an analysis of the options available for RH expiring on 19-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $725.88-$869.90 at expiration. In this scenario, the average linear return for the trade would be 66.99%.

Big 7.90% Change: After closing the last trading session at $672.65, RH opened today at $706.28 and has reached a high of $727.76.

Trade approach: A movement as big as 7.90% is a significantly bullish indicator, so this trade is designed to be profitable if RH maintains its current direction and does not revert back to pricing on the bearish side of $725.76 on 19-Nov-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 RH closes at or above $716.30 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 52.93% 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.