52-Week High Alert: Trading today’s movement in TORONTO-DOMINION BANK $TD

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

TD was recently trading at $79.67 and has an implied volatility of 16.80% for this period. Based on an analysis of the options available for TD expiring on 18-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $79.67-$84.13 at expiration. In this scenario, the average linear return for the trade would be 37.99%.

52 week high: TORONTO-DOMINION BANK recently reached a new 52-week high at $79.92. TD had traded in the range $56.37-$79.55 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 TD maintains its current direction and does not revert back to pricing on the bearish side of $79.67 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 TORONTO-DOMINION BANK closes at or above $79.30 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 53.45% 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.