52-Week High Alert: Trading today’s movement in CH ROBINSON WORLDWIDE
The automated Quantcha Trade Ideas Service has detected a promising
CHRW was recently trading at $78.48 and has an implied volatility of 11.56% for this period. Based on an analysis of the options available for CHRW expiring on 17-Mar-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $78.18-$81.17 at expiration. In this scenario, the average linear return for the trade would be 19.05%.
52 week high: CH ROBINSON WORLDWIDE recently reached a new 52-week high at $78.89. CHRW had traded in the range $65.57-$77.94 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 CHRW maintains its current direction and does not revert back to pricing on the bearish side of $78.48 on 17-Mar-2017. 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 CH ROBINSON WORLDWIDE closes at or above $77.10 on 17-Mar-2017. Based on our risk-neutral analysis, there is a 64.43% 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.
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This is an automated post generated based on a market analysis of delayed data at 2/17/2017 1:25:42 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.