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Quantchabot has detected a promising Bull Put Spread trade opportunity for FORTUNE BRANDS HOME (FBHS) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FBHS was recently trading at $82.99 and has an implied volatility of 37.39% for this period. Based on an analysis of the options available for FBHS expiring on 18-Sep-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $82.76-$93.13 at expiration. In this scenario, the average linear return for the trade would be 56.38%.

52 week high: FORTUNE BRANDS HOME recently reached a new 52-week high at $83.27. FBHS had traded in the range $33.90-$82.25 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 FBHS maintains its current direction and does not revert back to pricing on the bearish side of $82.99 on 18-Sep-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 FORTUNE BRANDS HOME closes at or above $82.10 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 52.72% 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.