Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Put Spread trade opportunity for ILLINOIS TOOL WORKS (ITW) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. ITW was recently trading at $202.75 and has an implied volatility of 26.07% for this period. Based on an analysis of the options available for ITW expiring on 16-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $201.63-$216.83 at expiration. In this scenario, the average linear return for the trade would be 38.89%. 52 week high: ILLINOIS TOOL WORKS recently reached a new 52-week high at $203.05. ITW had traded in the range $115.94-$202.68 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 ITW maintains its current direction and does not revert back to pricing on the bearish side of $202.75 on 16-Oct-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 ILLINOIS TOOL WORKS closes at or above $198.60 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 58.26% 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.