Big Loser Alert: Trading today’s -8.5% move in EVERQUOTE INC. CLASS A COMMON STOCK $EVER

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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 $27.95 and has an implied volatility of 86.47% 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 $19.90-$28.01 at expiration. In this scenario, the average linear return for the trade would be 25.77%.

Big -8.54% Change: After closing the last trading session at $30.56, EVERQUOTE INC. CLASS A COMMON STOCK opened today at $30.59 and has reached a low of $27.51.

Trade approach: A movement as big as -8.54% 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 $27.95 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 $28.02 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 50.04% 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.