52-Week High Alert: Trading today’s movement in KLA CORP $KLAC

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Quantchabot has detected a promising Bull Put Spread trade opportunity for KLA CORP (KLAC) for the 29-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KLAC was recently trading at $358.22 and has an implied volatility of 33.80% for this period. Based on an analysis of the options available for KLAC expiring on 29-Oct-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $358.26-$403.61 at expiration. In this scenario, the average linear return for the trade would be 47.58%.

52 week high: KLA CORP recently reached a new 52-week high at $364.79. KLAC had traded in the range $174.70-$359.69 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 KLAC maintains its current direction and does not revert back to pricing on the bearish side of $358.22 on 29-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 KLA CORP closes at or above $357.90 on 29-Oct-2021. Based on our risk-neutral analysis, there is a 50.33% 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.