Quantcha now offering unlimited commission-free options trading.

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

EL was recently trading at $235.75 and has an implied volatility of 28.46% for this period. Based on an analysis of the options available for EL expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $235.28-$266.59 at expiration. In this scenario, the average linear return for the trade would be 42.60%.

52 week high: ESTEE LAUDER COS recently reached a new 52-week high at $238.55. EL had traded in the range $137.01-$237.82 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 EL maintains its current direction and does not revert back to pricing on the bearish side of $235.75 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 ESTEE LAUDER COS closes at or above $233.70 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.15% 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.