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Quantchabot has detected a promising Bull Put Spread trade opportunity for OKTA INC. CL A COMMON STOCK (OKTA) for the 28-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
OKTA was recently trading at $238.97 and has an implied volatility of 41.76% for this period. Based on an analysis of the options available for OKTA expiring on 28-May-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $239.01-$279.11 at expiration. In this scenario, the average linear return for the trade would be 27.62%.
Big 7.37% Change: After closing the last trading session at $222.56, OKTA INC. CL A COMMON STOCK opened today at $227.70 and has reached a high of $239.01.
Trade approach: A movement as big as 7.37% is a significantly bullish indicator, so this trade is designed to be profitable if OKTA maintains its current direction and does not revert back to pricing on the bearish side of $238.97 on 28-May-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 OKTA INC. CL A COMMON STOCK closes at or above $238.75 on 28-May-2021. Based on our risk-neutral analysis, there is a 50.28% 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.