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Quantchabot has detected a promising Bull Put Spread trade opportunity for ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO (ZM) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ZM was recently trading at $146.30 and has an implied volatility of 100.27% for this period. Based on an analysis of the options available for ZM expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $146.49-$213.95 at expiration. In this scenario, the average linear return for the trade would be 109.62%.
Big 8.22% Change: After closing the last trading session at $135.18, ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO opened today at $140.11 and has reached a high of $148.00.
Trade approach: A movement as big as 8.22% is a significantly bullish indicator, so this trade is designed to be profitable if ZM maintains its current direction and does not revert back to pricing on the bearish side of $146.30 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 bullish strategy, the trade would be profitable if ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO closes at or above $146.00 on 15-May-2020. Based on our risk-neutral analysis, there is a 50.36% 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.