52-Week High Alert: Trading today’s movement in RPM INTERNATIONAL $RPM

Quantchabot has detected a promising Bull Call Spread trade opportunity for RPM INTERNATIONAL (RPM) for the 16-Dec-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RPM was recently trading at $101.35 and has an implied volatility of 29.44% for this period. Based on an analysis of the options available for RPM expiring on 16-Dec-2022, there is a 34.23% likelihood that the underlying will close within the analyzed range of $101.64-$109.90 at expiration. In this scenario, the average linear return for the trade would be 12.66%.

52 week high: RPM INTERNATIONAL recently reached a new 52-week high at $102.35. RPM had traded in the range $74.56-$101.48 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 RPM maintains its current direction and does not revert back to pricing on the bearish side of $101.35 on 16-Dec-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 RPM INTERNATIONAL closes at or above $100.90 on 16-Dec-2022. Based on our risk-neutral analysis, there is a 53.71% 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.