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Quantchabot has detected a promising Bear Put Spread trade opportunity for FASTLY INC (FSLY) for the 23-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FSLY was recently trading at $89.13 and has an implied volatility of 99.69% for this period. Based on an analysis of the options available for FSLY expiring on 23-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $76.63-$89.13 at expiration. In this scenario, the average linear return for the trade would be 62.79%.
Big -27.64% Change: After closing the last trading session at $123.18, FASTLY INC opened today at $86.62 and has reached a low of $85.10.
Trade approach: A movement as big as -27.64% is a significantly bearish indicator, so this trade is designed to be profitable if FSLY maintains its current direction and does not revert back to pricing on the bullish side of $89.13 on 23-Oct-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 FASTLY INC closes at or below $89.20 on 23-Oct-2020. Based on our risk-neutral analysis, there is a 50.20% 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.