Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for QUANTA SERVICES (PWR) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PWR was recently trading at $115.11 and has an implied volatility of 28.96% for this period. Based on an analysis of the options available for PWR expiring on 15-Oct-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $115.06-$125.41 at expiration. In this scenario, the average linear return for the trade would be 56.25%.
52 week high: QUANTA SERVICES recently reached a new 52-week high at $117.19. PWR had traded in the range $48.53-$116.72 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 PWR maintains its current direction and does not revert back to pricing on the bearish side of $115.11 on 15-Oct-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 QUANTA SERVICES closes at or above $113.20 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 57.50% 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.