52-Week High Alert: Trading today’s movement in U.S. BANCORP $USB

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

USB was recently trading at $63.36 and has an implied volatility of 23.03% for this period. Based on an analysis of the options available for USB expiring on 14-Jan-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $63.36-$64.25 at expiration. In this scenario, the average linear return for the trade would be 37.01%.

52 week high: U.S. BANCORP recently reached a new 52-week high at $63.38. USB had traded in the range $42.47-$63.01 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 USB maintains its current direction and does not revert back to pricing on the bearish side of $63.36 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 U.S. BANCORP closes at or above $63.27 on 14-Jan-2022. Based on our risk-neutral analysis, there is a 54.05% 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.