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Quantchabot has detected a promising Bull Put Spread trade opportunity for WHIRLPOOL (WHR) for the 2-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WHR was recently trading at $181.38 and has an implied volatility of 34.01% for this period. Based on an analysis of the options available for WHR expiring on 2-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $181.42-$205.59 at expiration. In this scenario, the average linear return for the trade would be 53.23%.

52 week high: WHIRLPOOL recently reached a new 52-week high at $181.87. WHR had traded in the range $64.00-$180.99 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 WHR maintains its current direction and does not revert back to pricing on the bearish side of $181.38 on 2-Oct-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 WHIRLPOOL closes at or above $181.30 on 2-Oct-2020. Based on our risk-neutral analysis, there is a 50.21% 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.