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Quantchabot has detected a promising Bull Put Spread trade opportunity for DIGITAL REALTY TRUST (DLR) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DLR was recently trading at $142.90 and has an implied volatility of 42.38% for this period. Based on an analysis of the options available for DLR expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $142.94-$153.51 at expiration. In this scenario, the average linear return for the trade would be 29.13%.

52 week high: DIGITAL REALTY TRUST recently reached a new 52-week high at $144.06. DLR had traded in the range $105.00-$143.61 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 DLR maintains its current direction and does not revert back to pricing on the bearish side of $142.90 on 17-Apr-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 DIGITAL REALTY TRUST closes at or above $142.55 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.53% 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.