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Quantchabot has detected a promising Bull Put Spread trade opportunity for TWILIO INC (TWLO) for the 31-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TWLO was recently trading at $269.19 and has an implied volatility of 35.71% for this period. Based on an analysis of the options available for TWLO expiring on 31-Jul-2020, there is a 34.24% likelihood that the underlying will close within the analyzed range of $269.19-$272.24 at expiration. In this scenario, the average linear return for the trade would be 47.26%.
52 week high: TWILIO INC recently reached a new 52-week high at $275.50. TWLO had traded in the range $68.06-$271.00 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 TWLO maintains its current direction and does not revert back to pricing on the bearish side of $269.19 on 31-Jul-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 TWILIO INC closes at or above $269.11 on 31-Jul-2020. Based on our risk-neutral analysis, there is a 51.06% 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.