Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Put Spread trade opportunity for MERITAGE HOMES (MTH) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. MTH was recently trading at $83.83 and has an implied volatility of 53.61% for this period. Based on an analysis of the options available for MTH expiring on 17-Jul-2020, there is a 34.15% likelihood that the underlying will close within the analyzed range of $83.83-$86.48 at expiration. In this scenario, the average linear return for the trade would be 17.89%. 52 week high: MERITAGE HOMES recently reached a new 52-week high at $84.38. MTH had traded in the range $25.24-$83.78 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 MTH maintains its current direction and does not revert back to pricing on the bearish side of $83.83 on 17-Jul-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 MERITAGE HOMES closes at or above $83.60 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 53.45% 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.