52-Week High Alert: Trading today’s movement in CHARLES SCHWAB $SCHW

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Quantchabot has detected a promising Bull Put Spread trade opportunity for CHARLES SCHWAB (SCHW) for the 14-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SCHW was recently trading at $89.84 and has an implied volatility of 34.25% for this period. Based on an analysis of the options available for SCHW expiring on 14-Jan-2022, there is a 34.15% likelihood that the underlying will close within the analyzed range of $89.84-$93.26 at expiration. In this scenario, the average linear return for the trade would be 38.86%.

52 week high: CHARLES SCHWAB recently reached a new 52-week high at $92.14. SCHW had traded in the range $50.77-$91.50 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 SCHW maintains its current direction and does not revert back to pricing on the bearish side of $89.84 on 14-Jan-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 CHARLES SCHWAB closes at or above $89.71 on 14-Jan-2022. Based on our risk-neutral analysis, there is a 51.55% 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.