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Quantchabot has detected a promising Covered Put trade opportunity for FIVERR INTERNATIONAL LTD (FVRR) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FVRR was recently trading at $289.79 and has an implied volatility of 82.87% for this period. Based on an analysis of the options available for FVRR expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $211.17-$289.84 at expiration. In this scenario, the average linear return for the trade would be 231.10%.
Big -9.07% Change: After closing the last trading session at $318.70, FIVERR INTERNATIONAL LTD opened today at $300.00 and has reached a low of $288.00.
Trade approach: A movement as big as -9.07% is a significantly bearish indicator, so this trade is designed to be profitable if FVRR maintains its current direction and does not revert back to pricing on the bullish side of $289.79 on 16-Apr-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 FIVERR INTERNATIONAL LTD closes at or below $433.27 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 89.79% 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.