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Quantchabot has detected a promising Bull Put Spread trade opportunity for CERIDIAN HCM HOLDINGS INC (CDAY) for the 18-Dec-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CDAY was recently trading at $97.96 and has an implied volatility of 44.37% for this period. Based on an analysis of the options available for CDAY expiring on 18-Dec-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $97.97-$112.70 at expiration. In this scenario, the average linear return for the trade would be 57.05%.

52 week high: CERIDIAN HCM HOLDINGS INC recently reached a new 52-week high at $99.14. CDAY had traded in the range $38.40-$97.95 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 CDAY maintains its current direction and does not revert back to pricing on the bearish side of $97.96 on 18-Dec-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 CERIDIAN HCM HOLDINGS INC closes at or above $96.25 on 18-Dec-2020. Based on our risk-neutral analysis, there is a 55.04% 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.