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Quantchabot has detected a promising Bull Put Spread trade opportunity for HCA HEALTHCARE INC (HCA) for the 22-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HCA was recently trading at $154.86 and has an implied volatility of 33.95% for this period. Based on an analysis of the options available for HCA expiring on 22-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $154.89-$175.47 at expiration. In this scenario, the average linear return for the trade would be 45.72%.

52 week high: HCA HEALTHCARE INC recently reached a new 52-week high at $156.40. HCA had traded in the range $58.38-$155.84 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 HCA maintains its current direction and does not revert back to pricing on the bearish side of $154.86 on 22-Jan-2021. 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 HCA HEALTHCARE INC closes at or above $153.80 on 22-Jan-2021. Based on our risk-neutral analysis, there is a 52.26% 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.