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Quantchabot has detected a promising Covered Put trade opportunity for EVERQUOTE INC. CLASS A COMMON STOCK (EVER) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EVER was recently trading at $34.40 and has an implied volatility of 93.02% for this period. Based on an analysis of the options available for EVER expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $29.14-$34.41 at expiration. In this scenario, the average linear return for the trade would be 14.99%.
Big -16.44% Change: After closing the last trading session at $41.16, EVERQUOTE INC. CLASS A COMMON STOCK opened today at $41.27 and has reached a low of $34.10.
Trade approach: A movement as big as -16.44% is a significantly bearish indicator, so this trade is designed to be profitable if EVER maintains its current direction and does not revert back to pricing on the bullish side of $34.40 on 21-Feb-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 EVERQUOTE INC. CLASS A COMMON STOCK closes at or below $34.51 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 50.67% 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.