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Quantchabot has detected a promising Bull Put Spread trade opportunity for WELLTOWER INC (WELL) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WELL was recently trading at $56.12 and has an implied volatility of 77.99% for this period. Based on an analysis of the options available for WELL expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $56.13-$63.10 at expiration. In this scenario, the average linear return for the trade would be 19.11%.

Big 8.78% Change: After closing the last trading session at $51.59, WELLTOWER INC opened today at $54.09 and has reached a high of $58.00.

Trade approach: A movement as big as 8.78% is a significantly bullish indicator, so this trade is designed to be profitable if WELL maintains its current direction and does not revert back to pricing on the bearish side of $56.12 on 17-Apr-2020. 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 WELLTOWER INC closes at or above $55.35 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 54.77% 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.