52-Week High Alert: Trading today’s movement in MEDICAL PROPERTIES TRUST $MPW

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Quantchabot has detected a promising Bull Call Spread trade opportunity for MEDICAL PROPERTIES TRUST (MPW) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MPW was recently trading at $23.86 and has an implied volatility of 18.02% for this period. Based on an analysis of the options available for MPW expiring on 21-Jan-2022, there is a 34.15% likelihood that the underlying will close within the analyzed range of $23.86-$24.47 at expiration. In this scenario, the average linear return for the trade would be 22.35%.

52 week high: MEDICAL PROPERTIES TRUST recently reached a new 52-week high at $23.89. MPW had traded in the range $19.39-$23.80 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 MPW maintains its current direction and does not revert back to pricing on the bearish side of $23.86 on 21-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 MEDICAL PROPERTIES TRUST closes at or above $23.80 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 53.61% 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.