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Quantchabot has detected a promising Bear Call Spread trade opportunity for BOX INC (BOX) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BOX was recently trading at $22.20 and has an implied volatility of 44.13% for this period. Based on an analysis of the options available for BOX expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $19.07-$22.21 at expiration. In this scenario, the average linear return for the trade would be 47.51%.
Big -8.51% Change: After closing the last trading session at $24.27, BOX INC opened today at $21.85 and has reached a low of $21.16.
Trade approach: A movement as big as -8.51% is a significantly bearish indicator, so this trade is designed to be profitable if BOX maintains its current direction and does not revert back to pricing on the bullish side of $22.20 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 bearish strategy, the trade would be profitable if BOX INC closes at or below $22.65 on 21-May-2021. Based on our risk-neutral analysis, there is a 55.15% 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.