Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Put Spread trade opportunity for BMC STOCK HOLDINGS INC (BMCH) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. BMCH was recently trading at $42.31 and has an implied volatility of 47.53% for this period. Based on an analysis of the options available for BMCH expiring on 16-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $42.32-$48.74 at expiration. In this scenario, the average linear return for the trade would be 30.16%. 52 week high: BMC STOCK HOLDINGS INC recently reached a new 52-week high at $42.41. BMCH had traded in the range $13.38-$42.33 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 BMCH maintains its current direction and does not revert back to pricing on the bearish side of $42.31 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 BMC STOCK HOLDINGS INC closes at or above $42.15 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 51.11% 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.