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Quantchabot has detected a promising Bull Put Spread trade opportunity for ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO (ZM) for the 26-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ZM was recently trading at $383.23 and has an implied volatility of 64.73% for this period. Based on an analysis of the options available for ZM expiring on 26-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $383.29-$480.24 at expiration. In this scenario, the average linear return for the trade would be 94.53%.
Big 7.40% Change: After closing the last trading session at $356.81, ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO opened today at $360.00 and has reached a high of $384.23.
Trade approach: A movement as big as 7.40% is a significantly bullish indicator, so this trade is designed to be profitable if ZM maintains its current direction and does not revert back to pricing on the bearish side of $383.23 on 26-Feb-2021. 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 ZOOM VIDEO COMMUNICATIONS INC. CLASS A COMMON STO closes at or above $383.20 on 26-Feb-2021. Based on our risk-neutral analysis, there is a 50.04% 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.