52-Week High Alert: Trading today’s movement in H&R BLOCK $HRB

Quantchabot has detected a promising Bull Call Spread trade opportunity for H&R BLOCK (HRB) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HRB was recently trading at $44.57 and has an implied volatility of 23.36% for this period. Based on an analysis of the options available for HRB expiring on 20-Oct-2023, there is a 34.68% likelihood that the underlying will close within the analyzed range of $44.60-$45.65 at expiration. In this scenario, the average linear return for the trade would be 11.67%.

52 week high: H&R BLOCK recently reached a new 52-week high at $44.60. HRB had traded in the range $28.83-$44.02 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 HRB maintains its current direction and does not revert back to pricing on the bearish side of $44.57 on 20-Oct-2023. 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 H&R BLOCK closes at or above $44.50 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.70% 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.






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