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Quantchabot has detected a promising Bull Put Spread trade opportunity for LOWE’S COMPANIES (LOW) for the 12-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LOW was recently trading at $214.99 and has an implied volatility of 20.53% for this period. Based on an analysis of the options available for LOW expiring on 12-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $214.21-$227.06 at expiration. In this scenario, the average linear return for the trade would be 48.23%.
52 week high: LOWE’S COMPANIES recently reached a new 52-week high at $215.50. LOW had traded in the range $146.72-$215.22 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 LOW maintains its current direction and does not revert back to pricing on the bearish side of $214.99 on 12-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 LOWE’S COMPANIES closes at or above $213.35 on 12-Nov-2021. Based on our risk-neutral analysis, there is a 52.74% 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.