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Quantchabot has detected a promising Bull Put Spread trade opportunity for ZUORA INC (ZUO) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ZUO was recently trading at $16.27 and has an implied volatility of 47.73% for this period. Based on an analysis of the options available for ZUO expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.27-$19.18 at expiration. In this scenario, the average linear return for the trade would be 56.93%.
Big 8.25% Change: After closing the last trading session at $15.03, ZUORA INC opened today at $15.69 and has reached a high of $16.47.
Trade approach: A movement as big as 8.25% is a significantly bullish indicator, so this trade is designed to be profitable if ZUO maintains its current direction and does not revert back to pricing on the bearish side of $16.27 on 21-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 ZUORA INC closes at or above $16.20 on 21-May-2021. Based on our risk-neutral analysis, there is a 51.08% 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.