52-Week High Alert: Trading today’s movement in MCKESSON $MCK

Quantchabot has detected a new Bull Call Spread trade opportunity for MCKESSON (MCK) for the 26-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MCK was recently trading at $585.69 and has an implied volatility of 17.28% for this period. Based on an analysis of the options available for MCK expiring on 26-Jul-2024, there is a 34.17% likelihood that the underlying will close within the analyzed range of $589.92-$627.55 at expiration. In this scenario, the average linear return for the trade would be 10.54%.

52 week high: MCKESSON recently reached a new 52-week high at $587.90. MCK had traded in the range $383.82-$587.23 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 MCK maintains its current direction and does not revert back to pricing on the bearish side of $585.69 on 26-Jul-2024. 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 MCKESSON closes at or above $589.20 on 26-Jul-2024. Based on our risk-neutral analysis, there is a 50.77% 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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