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Quantchabot has detected a promising Bull Put Spread trade opportunity for VEEVA SYSTEMS INC (VEEV) for the 15-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VEEV was recently trading at $189.55 and has an implied volatility of 42.77% for this period. Based on an analysis of the options available for VEEV expiring on 15-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $189.60-$208.70 at expiration. In this scenario, the average linear return for the trade would be 52.70%.
52 week high: VEEVA SYSTEMS INC recently reached a new 52-week high at $191.76. VEEV had traded in the range $118.11-$189.56 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 VEEV maintains its current direction and does not revert back to pricing on the bearish side of $189.55 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 VEEVA SYSTEMS INC closes at or above $189.20 on 15-May-2020. Based on our risk-neutral analysis, there is a 50.87% 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.