Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Put Spread trade opportunity for AMERICAN EAGLE (AEO) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. AEO was recently trading at $34.57 and has an implied volatility of 42.96% for this period. Based on an analysis of the options available for AEO expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $34.57-$39.21 at expiration. In this scenario, the average linear return for the trade would be 67.71%. 52 week high: AMERICAN EAGLE recently reached a new 52-week high at $35.24. AEO had traded in the range $6.54-$34.84 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 AEO maintains its current direction and does not revert back to pricing on the bearish side of $34.57 on 21-May-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 AMERICAN EAGLE closes at or above $34.42 on 21-May-2021. Based on our risk-neutral analysis, there is a 51.41% 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.