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Quantchabot has detected a promising Bull Put Spread trade opportunity for TEMPUR SEALY INTERNATIONAL (TPX) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TPX was recently trading at $47.78 and has an implied volatility of 34.47% for this period. Based on an analysis of the options available for TPX expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $47.78-$52.86 at expiration. In this scenario, the average linear return for the trade would be 42.86%.
52 week high: TEMPUR SEALY INTERNATIONAL recently reached a new 52-week high at $48.41. TPX had traded in the range $20.68-$48.34 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 TPX maintains its current direction and does not revert back to pricing on the bearish side of $47.78 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 TEMPUR SEALY INTERNATIONAL closes at or above $46.75 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 58.57% 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.