Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Put Spread trade opportunity for CATERPILLAR (CAT) for the 23-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CAT was recently trading at $168.40 and has an implied volatility of 32.37% for this period. Based on an analysis of the options available for CAT expiring on 23-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $168.40-$174.49 at expiration. In this scenario, the average linear return for the trade would be 77.02%. 52 week high: CATERPILLAR recently reached a new 52-week high at $169.25. CAT had traded in the range $87.50-$165.78 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 CAT maintains its current direction and does not revert back to pricing on the bearish side of $168.40 on 23-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 CATERPILLAR closes at or above $167.68 on 23-Oct-2020. Based on our risk-neutral analysis, there is a 54.82% 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.