52-Week High Alert: Trading today’s movement in HEWLETT-PACKARD $HPQ

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Quantchabot has detected a promising Bull Call Spread trade opportunity for HEWLETT-PACKARD (HPQ) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HPQ was recently trading at $35.52 and has an implied volatility of 32.55% for this period. Based on an analysis of the options available for HPQ expiring on 18-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $35.27-$41.32 at expiration. In this scenario, the average linear return for the trade would be 44.16%.

52 week high: HEWLETT-PACKARD recently reached a new 52-week high at $36.21. HPQ had traded in the range $20.58-$36.00 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 HPQ maintains its current direction and does not revert back to pricing on the bearish side of $35.52 on 18-Feb-2022. 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 HEWLETT-PACKARD closes at or above $35.25 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.16% 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.