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Quantchabot has detected a promising Bull Put Spread trade opportunity for OKTA INC. CL A COMMON STOCK (OKTA) for the 29-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
OKTA was recently trading at $156.91 and has an implied volatility of 54.39% for this period. Based on an analysis of the options available for OKTA expiring on 29-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $156.98-$184.58 at expiration. In this scenario, the average linear return for the trade would be 65.95%.
52 week high: OKTA INC. CL A COMMON STOCK recently reached a new 52-week high at $158.94. OKTA had traded in the range $88.66-$154.97 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 OKTA maintains its current direction and does not revert back to pricing on the bearish side of $156.91 on 29-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 OKTA INC. CL A COMMON STOCK closes at or above $156.70 on 29-May-2020. Based on our risk-neutral analysis, there is a 50.44% 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.