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Quantchabot has detected a promising Bull Put Spread trade opportunity for MARKEL (MKL) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MKL was recently trading at $1,296.75 and has an implied volatility of 16.84% for this period. Based on an analysis of the options available for MKL expiring on 15-Oct-2021, there is a 34.17% likelihood that the underlying will close within the analyzed range of $1,296.75-$1,309.71 at expiration. In this scenario, the average linear return for the trade would be 12.08%.
52 week high: MARKEL recently reached a new 52-week high at $1,299.97. MKL had traded in the range $913.04-$1,288.00 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 MKL maintains its current direction and does not revert back to pricing on the bearish side of $1,296.75 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 MARKEL closes at or above $1,295.25 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 54.65% 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.