Big Loser Alert: Trading today’s -7.1% move in WORKDAY $WDAY

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Quantchabot has detected a promising Bear Put Spread trade opportunity for WORKDAY (WDAY) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

WDAY was recently trading at $214.34 and has an implied volatility of 39.05% for this period. Based on an analysis of the options available for WDAY expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $183.90-$214.39 at expiration. In this scenario, the average linear return for the trade would be 61.29%.

Big -7.13% Change: After closing the last trading session at $230.80, WORKDAY opened today at $220.22 and has reached a low of $212.50.

Trade approach: A movement as big as -7.13% is a significantly bearish indicator, so this trade is designed to be profitable if WDAY maintains its current direction and does not revert back to pricing on the bullish side of $214.34 on 15-Jan-2021. 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 WORKDAY closes at or below $217.80 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 54.09% 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.