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Quantchabot has detected a promising Bull Put Spread trade opportunity for HCA HEALTHCARE INC (HCA) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HCA was recently trading at $154.32 and has an implied volatility of 36.66% for this period. Based on an analysis of the options available for HCA expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $154.36-$180.46 at expiration. In this scenario, the average linear return for the trade would be 61.46%.

52 week high: HCA HEALTHCARE INC recently reached a new 52-week high at $154.94. HCA had traded in the range $58.38-$151.97 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 $154.32 on 15-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 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.93% 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.