Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for HOME DEPOT (HD) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. HD was recently trading at $193.60 and has an implied volatility of 49.20% for this period. Based on an analysis of the options available for HD expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $152.54-$193.88 at expiration. In this scenario, the average linear return for the trade would be 81.82%. Big -9.06% Change: After closing the last trading session at $212.89, HOME DEPOT opened today at $195.41 and has reached a low of $184.84. Trade approach: A movement as big as -9.06% is a significantly bearish indicator, so this trade is designed to be profitable if HD maintains its current direction and does not revert back to pricing on the bullish side of $193.60 on 15-May-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit. Upside potential: Using this bearish strategy, the trade would be profitable if HOME DEPOT closes at or below $287.43 on 15-May-2020. Based on our risk-neutral analysis, there is a 94.97% 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.