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Quantchabot has detected a promising Bull Put Spread trade opportunity for HECLA MINING (HL) for the 5-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HL was recently trading at $5.48 and has an implied volatility of 54.09% for this period. Based on an analysis of the options available for HL expiring on 5-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $5.48-$6.28 at expiration. In this scenario, the average linear return for the trade would be 46.93%.
Big 7.24% Change: After closing the last trading session at $5.11, HECLA MINING opened today at $5.14 and has reached a high of $5.48.
Trade approach: A movement as big as 7.24% is a significantly bullish indicator, so this trade is designed to be profitable if HL maintains its current direction and does not revert back to pricing on the bearish side of $5.48 on 5-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 HECLA MINING closes at or above $5.34 on 5-Nov-2021. Based on our risk-neutral analysis, there is a 57.52% 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.