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Quantchabot has detected a promising Bull Call Spread trade opportunity for AETNA (AET) for the 18-Jan-2019 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AET was recently trading at $210.75 and has an implied volatility of 11.40% for this period. Based on an analysis of the options available for AET expiring on 18-Jan-2019, there is a 34.14% likelihood that the underlying will close within the analyzed range of $211.63-$222.60 at expiration. In this scenario, the average linear return for the trade would be 11.94%.

52 week high: AETNA recently reached a new 52-week high at $210.90. AET had traded in the range $166.89-$210.61 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 AET maintains its current direction and does not revert back to pricing on the bearish side of $210.75 on 18-Jan-2019. 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 AETNA closes at or above $208.40 on 18-Jan-2019. Based on our risk-neutral analysis, there is a 61.94% 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.