52-Week High Alert: Trading today’s movement in DELL TECHNOLOGIES INC $DELL

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Quantchabot has detected a promising Bull Put Spread trade opportunity for DELL TECHNOLOGIES INC (DELL) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DELL was recently trading at $59.12 and has an implied volatility of 27.58% for this period. Based on an analysis of the options available for DELL expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $59.12-$64.72 at expiration. In this scenario, the average linear return for the trade would be 61.84%.

52 week high: DELL TECHNOLOGIES INC recently reached a new 52-week high at $59.75. DELL had traded in the range $35.55-$59.50 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 DELL maintains its current direction and does not revert back to pricing on the bearish side of $59.12 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 DELL TECHNOLOGIES INC closes at or above $58.99 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.99% 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.