Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Put Spread trade opportunity for AUTOMATIC DATA PROCESSING (ADP) for the 23-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. ADP was recently trading at $199.45 and has an implied volatility of 18.08% for this period. Based on an analysis of the options available for ADP expiring on 23-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $198.54-$211.46 at expiration. In this scenario, the average linear return for the trade would be 52.88%. 52 week high: AUTOMATIC DATA PROCESSING recently reached a new 52-week high at $200.51. ADP had traded in the range $127.31-$199.53 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 ADP maintains its current direction and does not revert back to pricing on the bearish side of $199.45 on 23-Jul-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 AUTOMATIC DATA PROCESSING closes at or above $198.20 on 23-Jul-2021. Based on our risk-neutral analysis, there is a 51.08% 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.