Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Covered Put trade opportunity for PELOTON INTERACTIVE INC. CLASS A COMMON STOCK (PTON) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PTON was recently trading at $29.34 and has an implied volatility of 52.97% for this period. Based on an analysis of the options available for PTON expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $21.58-$29.44 at expiration. In this scenario, the average linear return for the trade would be 813.64%.
Big -10.28% Change: After closing the last trading session at $32.70, PELOTON INTERACTIVE INC. CLASS A COMMON STOCK opened today at $29.94 and has reached a low of $29.10.
Trade approach: A movement as big as -10.28% is a significantly bearish indicator, so this trade is designed to be profitable if PTON maintains its current direction and does not revert back to pricing on the bullish side of $29.34 on 17-Apr-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 PELOTON INTERACTIVE INC. CLASS A COMMON STOCK closes at or below $43.79 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 89.95% 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.