Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Put Spread trade opportunity for CATERPILLAR (CAT) for the 22-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. CAT was recently trading at $181.18 and has an implied volatility of 30.58% for this period. Based on an analysis of the options available for CAT expiring on 22-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $180.16-$192.93 at expiration. In this scenario, the average linear return for the trade would be 61.78%. 52 week high: CATERPILLAR recently reached a new 52-week high at $185.98. CAT had traded in the range $87.50-$183.81 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 CAT maintains its current direction and does not revert back to pricing on the bearish side of $181.18 on 22-Jan-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 CATERPILLAR closes at or above $179.47 on 22-Jan-2021. Based on our risk-neutral analysis, there is a 52.25% 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.