The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for PROGRESSIVE () for the 15-Sep-2017 expiration period. You can analyze the opportunity in depth over at the .
PGR was recently trading at $46.99 and has an implied volatility of 13.29% for this period. Based on an analysis of the options available for PGR expiring on 15-Sep-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $47.20-$49.61 at expiration. In this scenario, the average linear return for the trade would be 53.85%.
52 week high: PROGRESSIVE recently reached a new 52-week high at $47.00. PGR had traded in the range $30.54-$46.88 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 PGR maintains its current direction and does not revert back to pricing on the bearish side of $46.99 on 15-Sep-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 PROGRESSIVE closes at or above $47.20 on 15-Sep-2017. Based on our risk-neutral analysis, there is a 50.05% 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 .
This is an automated post generated based on a market analysis of delayed data at 7/26/2017 10:47:46 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.